90 Million Americans
Not Working
Maybe the Bureau of
Labor Statistics should have skipped a month because the belated September jobs
report it issued Tuesday after the government shutdown wasn't worth the wait.
Payrolls rose a
humdrum 148,000 in September, the unemployment rate fell a tick to 7.2%, and
wages were up slightly. But once again the number that stands out is the
136,000 Americans in September (following the 516,000 in August) who joined
those "not in the labor force." The labor force participation rate
stayed at its lowest level since the 1970s at 63.2%.
The U.S. now has 90.6
million "non-institutionalized" men and women over the age of 16 not
working—an all-time high. That's 10 million above the 80.5 million when
President Obama took office. With total employment at 144.3 million, for every
three Americans over the age of 16 earning a paycheck there are two who aren't
even looking for a job. That's an ugly portent for American prosperity.
Demographics is about
half the explanation as about six million baby boomers have turned 65 since
2008. Another is that young people are staying in school longer. Both trends
are reinforced by the bearish job market. Even among those in their prime
working years between 25 and 64, the number not working has increased by about
1.8 million since 2008. That is on top of the 11.3 million who are officially
unemployed.
Easy access to
expanded government welfare benefits that substitute for work—unemployment
insurance, disability, food stamps and soon ObamaCare—also contribute to the
decline, as economists like Casey Mulligan of the University of Chicago have
documented.
Our Keynesian friends
chalk it up to the "fiscal drag" caused by sequester budget cuts and
the government shutdown. But the September hiring figures predate the shutdown.
And though the federal government has been laying off some workers, states and
localities are back hiring.
In August and
September combined, public employment rose by 54,000, with all the gains in
state and local governments. Government hired more workers in those two months
than did any industry other than health care and business services. The
government is not hurting for money.
To get more private
jobs requires faster economic growth, and the Obama Administration could do
worse than listen to those who do most of the hiring in America. According to
the National Federation of Independent Business, two big concerns are
regulation and ObamaCare.
"Consumers and
small business owners are pessimistic," concludes NFIB from its latest
survey. They aren't "expecting a 'crash' in the economy, just accepting
the notion that growth is going to be sub-par and that their government is
likely to continue in dysfunctional mode." Q.E.D.
The entire link can be found at:
http://online.wsj.com/news/articles/SB10001424052702303902404579151843080376798
No comments:
Post a Comment