U.S. Employment Outlook Growing More Dire

When the June jobs report from the Bureau of Labor Statistics came out, President Barack Obama’s lapdogs, i.e., the media, were falling all overthemselves singing the annointed one’s praises because a meager 80,000 jobs were added during the month and the unemployment rate was at 8.2 percent. Never mind that the number of jobs is still some 5 million below what it was before the Great Recession. When you are down 5 million jobs, the creation of 80,000 is nothing about which to brag.

But there is another statistic the media largely ignored. While 80,000 jobs were added in June, 85,000 people left the workforce entirely and began collecting disability, according to a report from the Social Security Administration.

In other words, more people went on disability in June than job were created.

In fact, since the so-called economy recovery began in June 2009, when the Great Recession supposedly ended, 2.6 million jobs have been created while 3.1 million workers went on disability. Put another way, the number of people going on disability has grown 19 percent faster than the number of jobs created since the recovery began.

Another fact that the media has largely ignored during the Obama “recovery,” is the number of workers who have dropped out of the workforce. According to an Investors Business Daily study of Bureau of Labor Statistics data, some 7.3 million people have dropped out of the workforce since June 2009.

In fact, Investors Business Daily reporter that the labor force participation rate is at 63.8 percent, the lowest level in 30 years. The labor force participation rate is the number of people with jobs compared to the entire working-age population.

Other findings from Investors Business Daily:

  • The unemployment rate has been above 8 percent for 41 consecutive months. In the previous 60 years, the jobless topped 8 percent in a total of only 39 months.
  • The number of long-term unemployed — those out of work 27 weeks or more — is still 5.4 million — almost 1 million higher than when the recovery began, and almost twice the level it ever reached prior to Obama’s recovery.

Another figure the media largely ignores is the Bureau of Labor Statistics U-6 unemployment rate, which is actually a more accurate look at unemployment. That is because the figure cited by the media only includes the percentage actively looking for work, while the U-6 rate includes those who want a job but have stopped actively looking or who have taken a part-time job because they could find nothing else.

The U-6 unemployment rate for June was 14.9 percent.

Another jobs-related issue the media ignore is the growth of those looking for jobs.

For June, the unemployment rate remained steady at 8.2 percent despite the fact that the number of people considering themselves employed actually grew by 128,000. That is because the number of people looking for work increased by 189,000. This means the labor force is growing faster than job growth. This is a good sign that the unemployment rate is about to rise, according to The Wall Street Journal.

This is the real jobs picture. The situation is worse today than it was during the recession.

This is because Obama believes government knows better than the private sector on how to create jobs. What the last three years has proved is that big government collectivism makes bad economic policy.

In fact, the biggest jobs killer during the recovery has been Obamacare, which is a barrier to job growth, making it costly for small businesses to hire more employees.

This week, the House is expected to vote on a measure repealing Obamacare.

With unemployment still above 8 percent three years into the recovery — even after Obama promised us when he took office that if we gave him trillions of dollars to spend on a stimulus, unemployment would drop below 8 percent — repealing Obamacare and kicking Obama and the other Democrats out of office is a fiscal imperative.

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