Friday, June 4, 2010

41,000 new jobs created in the private sector, OUCH!!!

It takes around 125,000 new jobs each month just to match population growth.

Did you get that? 125,000 new jobs each month to match population growth.

Yes, the unemployment is back down to 9.7, but let's be real here, that is only temporary. And as I wrote last month, I want to see the real job numbers when the temporary census jobs shake out by the end of the summer. From the jobs report, the growth of jobs is from the government, in census jobs, temporary jobs.

Then we are back to square one. Looking at anemic numbers like 41,000 jobs a month from the private sector.

We are past, "Houston, we got a problem...."

Friday's employment report underscores the critical transition now underway in the U.S. economy. As the impact of government stimulus fades, job creation will have to come from growth in the private sector.

The latest data on the job market weren't encouraging.

A wave of hiring by the government brought a surge in employment; some 431,000 jobs were added for the month. But almost all of them were temporary Census Department jobs that will last for only a few weeks or months. Private sector employers added just 41,000 net new workers to their payrolls in May. Payroll gains were revised downward for March and April by a combined 22,000.

Even forecasters who are upbeat about the economic recovery were discouraged by the numbers.

“You’ll need to see (job gains) of about 200,000 to be considered a serious advance,” said Robert Barbera, chief economist at ITG.

The large number of census jobs added in May will also weigh on employment data in the months ahead. As those short-term jobs expire, they’ll count as jobs lost in the upcoming payroll data.

My question is this, "What happened to all those tax breaks for businesses to hire people?" My answer is this, "It does not look like it is working." And to Republicans, if you want to use TAX BREAKS, look at what is happening!!! It is not working. Time for some new innovation to addressing job creation in this country and not the same old stale, repackaged solutions that USED TO WORK, but is not working now.


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