Friday, June 4, 2010

Unemployment rate drops but most of the jobs created are temp jobs

From L.A. Times:

A burst of hiring of temporary census workers helped push down the unemployment rate in May, but the nation's private-sector employers added a mere 41,000 new jobs last month, the Labor Department said Friday.

The jobless rate edged down to 9.7% in May from 9.9% in April, but that was because the federal government added 411,000 jobs for the decade population count. Those jobs were expected and will disappear quickly over the summer.


Where are the green shoots?

So according to the BLS 431K jobs were created in May…41K were in the private sector and 390K were temporary government census workers. This is hardly good news particularly since this temporary bump will be short lived.

Based on employment patterns for the 2000 census, nearly all such census employment gains should reverse out of the data by the end of September, with June payrolls reflecting the first outright contraction in the reversal of current hiring.

Let's face facts, the "stimulus" was a very expensive joke that essentially pushed off the inevitable hardship that states are going to have to deal with sooner or later and that taxpayers are going to have to pay back with interest to China. And all the "green collar" jobs that Obama promised would save us all? It was all B.S. This is an epic train wreck.

The cold hard fact is that Obama's economic plan is not working and is not going to work: it's all a wealth transfer scheme while printing dollars in order to evoke the short-term Philips Curve. But this time, unlike other times, the coming (and current) tax burden to businesses and citizens due to massive debt is dampening economic growth.

2 comments:

Don E. Chute said...

The freekin Federal Government is our biggest employer. What is wrong with this picture?

PLU!

Harrison said...

I think about 450,000 were census jobs.