FacebookTwitterGoogle+RedditEmail

No Jobs For Americans

by Paul Craig Roberts

The alleged recovery took a direct hit from Friday’s payroll jobs report. The Bureau of Labor Statistics reported that the economy created 74,000 net new jobs in December.

Wholesale and retail trade accounted for 70,700 of these jobs or 95.5%.  It is likely that the December wholesale and retail hires were temporary for the Christmas shopping season, which doesn’t seem to have been very exuberant, especially in light of Macy’s decision to close five stores and lay off 2,500 employees.  It is a good bet that these December hires have already been laid off.

A job gain of 74,000, even if it is real, is about half of what is needed to keep the unemployment rate even with population growth. Yet the Bureau of Labor Statistics reports that the unemployment rate fell from 7.0% to 6.7%.  Clearly, this decline in unemployment was not caused by the reported 74,000 jobs gain.  The unemployment rate fell, because Americans unable to find jobs ceased looking for employment and, thereby, ceased to be counted as unemployed.

In America the unemployment rate is a deception just like everything else.  The rate of American unemployment fell, because people can’t find jobs.  The fewer the jobs, the lower the unemployment rate.
howecon

I noticed today that the financial media presstitutes were a bit hesitant to hype the drop in the rate of unemployment when there was no jobs growth to account for it. The Wall Street and bank economists did their best to disbelieve the jobs report as did some of the bought-and-paid-for university professors. Too many interests have a stake in the non-existent recovery declared 4.5 years ago to be able to admit that it is not really there.

I have been examining the monthly jobs reports for a decade or longer.  I must say that I as struck by the December report. Normally, a mainstay of jobs gain is the category “education and health services,” with “ambulatory health care services” adding thousands of jobs.  In December the net contribution of “education and health services” was zero, with “ambulatory health care services” losing 4,100 jobs and health care losing 6,000 jobs. If memory serves, this is a first.  Perhaps it reflects adverse impacts of the ripoff known as Obamacare, possibly the worst piece of domestic legislation passed in decades.

I was also struck by the report that the gain in employment of waitresses and bartenders, normally a large percentage of the job gain, was down to 9,400 jobs, which were offset by declines elsewhere, such as the layoff of local school teachers.

Aren’t Washington’s priorities wonderful?  $1,000 billion per year in Quantitative Easing, essentially subsidies  for 6 banks “too big to fail,” and nothing for school teachers.  It should warm every Republican’s heart.

A tiny bright spot in the payroll jobs report is 9,000 new manufacturing jobs. The US manufacturing workforce has declined so dramatically since jobs offshoring became the policy of American corporations that 9,000 jobs doesn’t register on the scale. Fabricated metal products, which I think is roofing metal, accounted for 56% of the manufacturing jobs. Roofing metal is not an export.  Employment in the production of products that could be exported, such as “computer and electronic equipment,” and “electronic instruments” declined by 2,400 and 3,500 respectively.

Clearly, this is not a payroll jobs report that provides cover for the looting of the prospects of ordinary Americans by the financial and offshoring elites. One can wonder how the BLS civil servants who produced it can avoid retribution. It will be interesting to see what occurs in the January payroll jobs report.

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. His latest book The Failure of Laissez-Faire Capitalism. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format.

 

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format. His latest book is The Neoconservative Threat to World Order.

More articles by:
July 28, 2016
Paul Street
Politician Speak at the DNC
Russell Mokhiber
Dems Dropping the N Word: When in Trouble, Blame Ralph
Jeffrey St. Clair
Night of the Hollow Men: Notes From the Democratic Convention
Renee Parsons
Blame It on the Russians
Herbert Dyer, Jr.
Is it the Cops or the Cameras? Putting Police Brutality in Historical Context
Howard Lisnoff
The Elephant in the Living Room
Pepe Escobar
The Real Secret of the South China Sea
Ramzy Baroud
Farewell to Yarmouk: A Palestinian Refugee’s Journey from Izmir to Greece
John Laforge
Wild Turkey with H-Bombs: Failed Coup Raise Calls for Denuclearization
Dave Lindorff
Moving Beyond the Sanders Campaign
Jill Richardson
There’s No Such Thing as a “Free Market”
Patrick Cockburn
Erdogan Moves Against the Gulen Movement in Turkey
Winslow Myers
Beyond Drift
Edward Martin - Mateo Pimentel
Who Are The Real Pariahs This Election?
Jan Oberg
The Clintons Celebrated, But Likely a Disaster for the Rest of the World
Johnny Gaunt
Brexit: the British Working Class has Just Yawned Awake
Mark Weisbrot
Attacking Trump for the Few Sensible Things He Says is Both Bad Politics and Bad Strategy
Thomas Knapp
Election 2016: Think Three’s a Crowd? Try 2,000
Corrine Fletcher
White Silence is Violence: How to be a White Accomplice
July 27, 2016
Richard Moser
The Party’s Over
M. G. Piety
Smoke and Mirrors in Philadelphia
Jeffrey St. Clair
The Humiliation Games: Notes on the Democratic Convention
Arun Gupta
Bernie Sanders’ Political Revolution Splinters Apart
John Eskow
The Loneliness of the American Leftist
Guillermo R. Gil
A Metaphoric Short Circuit: On Michelle Obama’s Speech at the DNC
Norman Pollack
Sanders, Our Tony Blair: A Defamation of Socialism
Claire Rater, Carol Spiegel and Jim Goodman
Consumers Can Stop the Overuse of Antibiotics on Factory Farms
Guy D. Nave
Make America Great Again?
Sam Husseini
Why Sarah Silverman is a Comedienne
Dave Lindorff
No Crooked Sociopaths in the White House
Dan Bacher
The Hired Gun: Jerry Brown Snags Bruce Babbitt as New Point Man For Delta Tunnels
Peter Lee
Trumputin! And the DNC Leak(s)
David Macaray
Interns Are Exploited and Discriminated Against
Ann Garrison
Rwanda, the Clinton Dynasty, and the Case of Dr. Léopold Munyakazi
Brett Warnke
Storm Clouds Over Philly
Chris Zinda
Snakes of Deseret
July 26, 2016
Andrew Levine
Pillory Hillary Now
Kshama Sawant
A Call to Action: Walk Out from the Democratic National Convention!
Russell Mokhiber
The Rabble Rise Together Against Bernie, Barney, Elizabeth and Hillary
Jeffrey St. Clair
Don’t Cry For Me, DNC: Notes From the Democratic Convention
Angie Beeman
Why Doesn’t Middle America Trust Hillary? She Thinks She’s Better Than Us and We Know It
Paul Street
An Update on the Hate…
Fran Shor
Beyond Trump vs Clinton
Ellen Brown
Japan’s “Helicopter Money” Play: Road to Hyperinflation or Cure for Debt Deflation?
Richard W. Behan
The Banana Republic of America: Democracy Be Damned
FacebookTwitterGoogle+RedditEmail