The Obama administration will no doubt be applauding yet another slight drop in the nation’s unemployment rate according to the latest jobs report, but it’s worth noting that according to this chart released by the administration as part of their sale of the stimulus spending unemployment was supposed to be at 5.8% by now:
The stimulus has, clearly, been a failure.
But beyond what the Obama administration sold us on the stimulus spending, this is a weak report. The nation added just 120,000 jobs, the smallest number since October and a lot less than the 203,000 projected by some economists. It’s also not quite enough to keep up with population growth, which requires about 150,000 new jobs per month. Plus, when you consider that we have to add roughly 262k per month to get back to where we were in December of 2007.
So how, despite all of this, did the unemployment rate still go down slightly? Participation in the labor force is still dropping:
Our job markets are still going backward, but because the labor pool is also shrinking, the unemployment rate is going down slightly.
There is no recovery here.