Wednesday, April 14, 2010

3.5 Million New Jobs is Not Nearly Enough

CNNMoney and the Vice President must think this is excellent news:

The government's Recovery Act is responsible for between 2.2 and 2.8 million jobs through the first quarter of 2010, according to the latest stimulus report from President Obama's chief economic adviser. The report, from the Council of Economic Advisers, says the economic stimulus is on track to create or save 3.5 million jobs by the end of the year. "From tax cuts to construction projects, the Recovery Act is firing on all cylinders when it comes to creating jobs and putting Americans back to work." Vice President Joe Biden said in a statement.

Job growth is better than job losses and this does seem to be sufficient to lower the unemployment rate by a modest amount. But let’s assume that simply keeping pace with a rising population and labor force means we have to create 100,000 new jobs per month. With the civilian non-institutional population being near 237 million, the projected increase in the employment to population ratio for 2010 seems to be a mere 1 percent. This ratio was 58.2% as of December 2009 and has risen to 58.6% as of March 2010. If it rises to 59.2% by the end of the year, we will still have a very weak labor market.


TheTrucker said...

So its time to close the southern border to incoming population and time to close the NAFTA zone to incoming goods, both of which are killing jobs in this country. You can smoke yer "comparative advantage" crack pipe some other time. And we can play nice with the Chinese and ask them real pretty please to float their currency some other time also.

Immigration reform is government making a profit off of fining those who hire undocumented workers. We can use the money for a jobs program.

The real people are just about ready to string up the economists that keep telling us that free trade and open borders are _gooooooooooood_. It may be good for the GDP (the GodDamProfessors) but it sucks for the Joe's.

malcolm said...

Can you explain the logic (ie what variables get linked and how) that produces the 100,000 per month job
number? About 4 years ago, the number that I had heard was 150,000
jobs per month. Does the change have to do with the decline in the (labor force/ population) rate? That number seems to be inching up.

Anonymous said...

i guess we can take heart that we had a previous president, w., who created on average 26,000 jobs a mo. during an "economic boom". yes, thats 2.5 million jobs over an 8 yr period. and some people want him back?
oh....for the good ole days

run75441 said...


< 1% maybe I am wrong?

Kevin Johnson said...

how about the H1B workers? foreigners working in the US?