Despite optimistic statements from the White House, America’s unemployment crisis continues relatively unabated.
According to the most recent (June 19) report of the Bureau of Labor Statistics (BLS) “twenty-five states had unemployment rate increases from April, 9 states and the District of Columbia had decreases, and 16 states had no change…”
Despite the relatively poor showing in the prior month, the White House and the Department of Labor continue to maintain that the jobs picture has been in a relatively upward trajectory. The BLS report goes on to note that “Forty-five states and the District of Columbia had unemployment rate decreases from a year earlier and five states had increases. The national jobless rate was essentially unchanged from April at 5.5 percent and was 0.8 percentage point lower than in May 2014.”
A more accurate look at the statistics, however, reveals that the nation’s employment status remains critical. James Clifton, writing for the Gallup organization, states that “ The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading…If you [are] unemployed and [have] subsequently given up on finding a job — if you are so hopelessly out of work that you’ve stopped looking over the past four weeks — the Department of Labor doesn’t count you as unemployed… Right now, as many as 30 million Americans are either out of work or severely underemployed…There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer … If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed …Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find …the government doesn’t count …”
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The labor participation rate has hit lows not seen for decades. The Heritage Foundation’s reports that the drop in labor force participation accounts for virtually the entire reduction of the unemployment rate since 2009.
The Administration has claimed that new jobs have been created under its tenure. As the New York Analysis of Policy & Government recently reported, however,
“The jobs that have come back following the depths of the recession have been lower paying than those that were lost. The Wall Street Journal reports “[T]he job market is a far cry from what it was before the financial crisis slammed the economy in 2008. The number of jobs in manufacturing, construction and government—typically well-paying fields—has shrunk, while lower- wage work grew. The U.S. has 1.6 million fewer manufacturing jobs than when the recession began, but 941,000 more jobs in the accommodation and food-service sector. More than 40% of the jobs added in just the past year have come in generally lower-paying fields such as food service, retail, and temporary help. The bad news for Americans doesn’t stop there. An analysis by the Center for Immigration Studies (CIS) notes that “two thirds of the net increase in employment since President Obama took office has gone to immigrant workers, primarily legal immigrants. [but also including some illegals]”