Are you feeling it? The Obama administration claimed Friday that a 0.4-point drop in the unemployment rate to 8.6 percent "provides further evidence that the economy is continuing to heal."
But the November jobs report revealed a discouraged and shrinking U.S. work force, while spurring suspicions of statistical manipulation by the government.
Based on a "payroll employment" increase of 120,000, the Labor Department said the jobless rate fell from 9 percent to 8.6 percent last month. Yet the larger factor was the 315,000 people who quit looking for work altogether, and thus were no longer counted as "unemployed."
November's bottom line: More people left the work force than got jobs.
"Participation in the labor force dropped 0.2 percent, so fewer people are in the work force. Even if no jobs are added, if fewer people are looking for work, the unemployment rate drops," explains Steve Stanek, a research fellow with the conservative Heartland Institute.
"The labor report notes the number of long-term unemployed was little changed at 5.7 million," Stanek observed.
Conservative critics said the November report renewed questions about the reality and credibility of government labor statistics. For example, in August, when no net increase in jobs was reported, the Labor Department calculated that the unemployment rate stayed steady at 9.1 percent.
"Today's 8.6 percentunemployment number gives the appearance that the jobs situation is improving," said Republican presidential candidate Michele Bachmann. "While I'm sure the president will attempt to take credit for it, he won't explain that the lower numbers are being propped up by huge numbers of Americans dropping out and giving up on trying to find a job."
When Obama took office nearly three years ago, the U.S. labor force was more than 2 million workers bigger than it is today. The November jobs report showed continued shrinkage of the private sector, with the labor participation rate falling to just 64 percent last month.
Politically, the unemployment rate is seen as crucial to the president's prospects in 2012. No U.S. president has been re-elected with a jobless rate of more than 8 percent. Jimmy Carter failed to win a second term when the nation's unemployment rate was 7 percent.
Even as the administration touted the latest job numbers, applications for unemployment benefits rose to 402,000 last week. The four-week moving average for jobless claims has been at or above 395,500 for 30 consecutive weeks.
The White House is urging Congress to extend jobless benefits beyond the current 99-week maximum, though no funding mechanism has been offered.
Kenneth Quinnell, head of the Florida Progressive Alliance, said the 8.6 percent unemployment figure "doesn't capture what's really happening to American workers or Floridians."
"Republicans in Congress and in the state Legislature need to pass legislation that will actually create significant jobs and stop pursuing the same failed policies they have pushed for decades," Quinnell said.
U.S. Rep. Tom Rooney, R-Tequesta, said the House has "passed more than 20 jobs bills that are waiting for votes in the do-nothing Senate."
The congressman urged Obama "to stop campaigning and call on the Senate to pass these bills right away," said Rooney, who authored one of the job proposals.
For the more than 13 million Americans still looking for work, and the 315,000 who simply gave up trying last month, this unemployment report highlights the failure of the presidents big-government, big-spending policies," the congressman said.
Commenting on the November statistics, Robert Sanchez, policy director at the free market-oriented James Madison Institute, noted, "Some of the hiring in the private sector is obviously seasonal, and many of the jobs may not last long beyond the end of the year."
Alan B. Krueger, chairman of the president's Counsel of Economic Advisers, said the jobs report "provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression."
Sanchez begged to differ.
"Hanging over the economy -- nationwide and in Florida -- is the uncertainty caused by the pending implementation of Obamacare, if its not ruled unconstitutional by the U.S. Supreme Court.
"Obamacare is a particular problem for employers in Florida, with its many service-sector jobs. In many situations, the employers costs to comply with Obamacares mandates would discourage the hiring of additional employees," Sanchez said from Tallahassee.
Amid a loss of up to 10 million private-sector jobs during Obama's term, the Federal Reserve projected earlier this year that unemployment rates of 8 percent are likely to remain until at least 2013.
But the administration has a plan for jobs on at least one front.
On Friday, the President's Advisory Commission on Educational Excellence for Hispanics convened in Miami to discuss and promote employment opportunities for Latinos.
Organizers for the gathering, attended by a dozen senior administration officials, said agenda items "covered a wide range of policy issues -- from jobs and the economy to education and health care, from comprehensive immigration reform to health care -- all in recognition that the future of our nation in the 21st century is inextricably linked to the success of the Hispanic community."
Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
Are you feeling it? The Obama administration claimed Friday that a 0.4-point drop in the unemployment rate to 8.6 percent "provides further evidence that the economy is continuing to heal."
But the November jobs report revealed a discouraged and shrinking U.S. work force, while spurring suspicions of statistical manipulation by the government.
Based on a "payroll employment" increase of 120,000, the Labor Department said the jobless rate fell from 9 percent to 8.6 percent last month. Yet the larger factor was the 315,000 people who quit looking for work altogether, and thus were no longer counted as "unemployed."
November's bottom line: More people left the work force than got jobs.
"Participation in the labor force dropped 0.2 percent, so fewer people are in the work force. Even if no jobs are added, if fewer people are looking for work, the unemployment rate drops," explains Steve Stanek, a research fellow with the conservative Heartland Institute.
"The labor report notes the number of long-term unemployed was little changed at 5.7 million," Stanek observed.
Conservative critics said the November report renewed questions about the reality and credibility of government labor statistics. For example, in August, when no net increase in jobs was reported, the Labor Department calculated that the unemployment rate stayed steady at 9.1 percent.
"Today's 8.6 percentunemployment number gives the appearance that the jobs situation is improving," said Republican presidential candidate Michele Bachmann. "While I'm sure the president will attempt to take credit for it, he won't explain that the lower numbers are being propped up by huge numbers of Americans dropping out and giving up on trying to find a job."
When Obama took office nearly three years ago, the U.S. labor force was more than 2 million workers bigger than it is today. The November jobs report showed continued shrinkage of the private sector, with the labor participation rate falling to just 64 percent last month.
Politically, the unemployment rate is seen as crucial to the president's prospects in 2012. No U.S. president has been re-elected with a jobless rate of more than 8 percent. Jimmy Carter failed to win a second term when the nation's unemployment rate was 7 percent.
Even as the administration touted the latest job numbers, applications for unemployment benefits rose to 402,000 last week. The four-week moving average for jobless claims has been at or above 395,500 for 30 consecutive weeks.
The White House is urging Congress to extend jobless benefits beyond the current 99-week maximum, though no funding mechanism has been offered.
Kenneth Quinnell, head of the Florida Progressive Alliance, said the 8.6 percent unemployment figure "doesn't capture what's really happening to American workers or Floridians."
"Republicans in Congress and in the state Legislature need to pass legislation that will actually create significant jobs and stop pursuing the same failed policies they have pushed for decades," Quinnell said.
U.S. Rep. Tom Rooney, R-Tequesta, said the House has "passed more than 20 jobs bills that are waiting for votes in the do-nothing Senate."
The congressman urged Obama "to stop campaigning and call on the Senate to pass these bills right away," said Rooney, who authored one of the job proposals.
For the more than 13 million Americans still looking for work, and the 315,000 who simply gave up trying last month, this unemployment report highlights the failure of the presidents big-government, big-spending policies," the congressman said.
Commenting on the November statistics, Robert Sanchez, policy director at the free market-oriented James Madison Institute, noted, "Some of the hiring in the private sector is obviously seasonal, and many of the jobs may not last long beyond the end of the year."
Alan B. Krueger, chairman of the president's Counsel of Economic Advisers, said the jobs report "provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression."
Sanchez begged to differ.
"Hanging over the economy -- nationwide and in Florida -- is the uncertainty caused by the pending implementation of Obamacare, if its not ruled unconstitutional by the U.S. Supreme Court.
"Obamacare is a particular problem for employers in Florida, with its many service-sector jobs. In many situations, the employers costs to comply with Obamacares mandates would discourage the hiring of additional employees," Sanchez said from Tallahassee.
Amid a loss of up to 10 million private-sector jobs during Obama's term, the Federal Reserve projected earlier this year that unemployment rates of 8 percent are likely to remain until at least 2013.
But the administration has a plan for jobs on at least one front.
On Friday, the President's Advisory Commission on Educational Excellence for Hispanics convened in Miami to discuss and promote employment opportunities for Latinos.
Organizers for the gathering, attended by a dozen senior administration officials, said agenda items "covered a wide range of policy issues -- from jobs and the economy to education and health care, from comprehensive immigration reform to health care -- all in recognition that the future of our nation in the 21st century is inextricably linked to the success of the Hispanic community."
Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
