Another Disappointing Jobs report
The U.S. added only 115 Thousand jobs in April, but the unemployment rate dropped from 8.2 to 8.1 per cent because more workers have at least temporarily given up looking for work. The disappointing report confirms for a second month in a row that the three-month spurt at the start of 2012 was just an abberation because of the warm winter. Not since 1981 have so few Americans of working age been employed or looking for work. Private companies added 130 Thousand jobs, but government job losses of 15 Thousand dropped today's report to 115 Thousand. The spring is usually the time students and graduates get on the employment roles. Instead, recent graduates are returning to school for more education and job training. More goods and services are being produced than at the start of the Great Recessioin in December, 2007, with five million fewer workers. The idea cheaper goods would bring on more employment and a higher standard of living isn't coming to fruition, a real surprise to many economists who had overlooked employers' unwillingness to expand their businesses. To break the back of the Great Depression, an average creation of 200 Thousand jobs a month is needed and with projections of half that through the summer, the Obama Administration is in deep trouble because the public vote on the economy more than anything else. From past voting, seems three percent is OK. The grey area between two to three percent puts a successful re-election in doubt. We are now hovering just two tenths of one per cent above two per cent.