Posts Tagged ‘U.S. labor department’
The U.S. Labor Department has issued its employment data for May, and it is an unmitigated disaster. A mere 38,000 new jobs — many of them part-time — were created, while the supposedly stellar jobs numbers for previous months were revised downwards. This is an appallingly bad employment report, yet the same Labor Department claims that the unemployment rate in the United States actually declined to 4.7 percent
It should be recalled that to keep pace with population growth, the American economy must add at least a quarter of a million new jobs each month. If the result of a dismal 38,000 jobs in May is a supposed decline in the unemployment rate in the U.S., the only explanation is that many discouraged job seekers have supposedly “left” the work force, meaning that they are no longer considered by the Labor Department to be unemployed.
The jobs report for May, a disaster by any definition, explains the official and unofficial realities of the U.S. economy in 2016. The Obama administration maintains that the employment situation in the country is excellent; the data , devoid of spin, displays the exact opposite.
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According to the latest data from the U.S. Labor Department, initial unemployment benefit claims reached 479,000 in the last week of July. This reflects an unanticipated increase of 4.1 %, the highest level of initial jobless claims since last April.
The latest jobless claims report from the world’s largest economy make clear that the global economic crisis not only remains a potent reality; the jobs crisis now afflicting most advanced economies make a consumer-led economic recovery impossible. With governments across the globe beginning to transition from deficit-funded stimulus programs to austerity, it is equally clear that sovereigns overloaded with public debt will not be able to compensate for the fall-off in private sector demand much longer.
The latest data on U.S. jobless claims is just another indicator that a double-dip recession is becoming inevitable.
What began initially as the Global Financial Crisis has now become the Global Economic Crisis. The global demand destruction that is raging is now leading to a massive jobs crisis that will ravage the societies of virtually every nation on the planet. Governments throughout the world will attempt to address the jobs crisis in the same manner they have been responding to the financial and economic crisis: they will beg, borrow and print money measured in the trillions of dollars to throw at the problem. Their results in combating monstrous levels of unemployment will likely be as ineffectual as our political masters and their “experts” have been in attempting to ameliorate every other aspect of the Global Economic Crisis.
Later this week, updated unemployment statistics for the United States will be released. President-elect Barack Obama has already warned that they will be “sobering,” which likely means he already knows how bad they are. However, the U.S. government deliberately understates the true unemployment rate when they release official numbers. Among the statistical gymnastics utilized by the U.S. Labor Department is the expediency of excluding discouraged jobless who have given up hope of finding employment; they simply do not exist when the U.S. government counts its number of unemployed workers. When this component of the unemployed is counted, the true jobless rate in the United States is in excess of 12%, about half the peak rate experienced during the Great Depression. No wonder Nobel Prize winning economist Paul Krugman has now joined the list of those proclaiming that the U.S. is now in an economic depression.
The consumer demand of the U.S., driven by debt, is now collapsing with the growing jobs crisis. This is leading to demand destruction for those export goods developing economies around the world depend on to employ their teeming masses. During the course of the year the jobs crisis will clearly be a global phenomena, as are all the other factors that characterize the ongoing Global Economic Crisis. While the ultimate result is unclear, history tells us that massive unemployment on a global scale rips asunder social cohesion, facilitates political extremism and despotism, and exacerbates international tensions. The jobs crisis may ultimately contribute to a geopolitical crisis that threatens the very peace of our planet.