| President Obama Attempts To Spin A Dismal Jobs Report |
| Jul-06-2012 |
| Keywords: jobs report, stocks, slump, selloff, wall street, |
President Obama today was campaigning in Ohio when the Labor Department released its dismal June jobs report.
The report showing that the economy grew a meager 80,000 jobs last month, well below estimates of job growth between 90,000 and 100,000.
Has he's grow accustomed over the past three months, the president put his best face forward in spinning the news.
"That's a step in the right direction," Obama told some 350 supporters. "But we can't be satisfied."
A small step forward at best. Job growth from May to June picked up by 3,000 jobs.
The June unemployment rate marks the 41st month of unemployment of 8% or higher - the longest streak since the Great Depression. And recall that back in 2009, Team Obama predicted that if Congress passed its $800 billion stimulus plan, the unemployment rate would be around 5.6% today.
President Obama presumptive Republican challenger Mitt Romney quickly pounced on the news saying, "It doesn't have to be this way. America can do better and this kick in the gut has got to end."
A kick in the gut is likely how most unemployed American's view the jobs report.
Here are some of the underlining statistics from this month's jobs report. While the headline jobless rate stayed steady at 8.2%, the U-6 rate (which is a broader measure, including those who have given up looking or consider themselves underemployed) rose to 14.9% from 14.8%. Average weekly hours rose to 34.5 from 34.4. That means companies are making existing workers put in more hours, rather than hiring new ones. Earnings per hour rose to $23.50 from $23.44, meaning companies are paying existing workers more, rather than hiring new ones. And the labor force participation rate stayed steady at 63.8%, which is still historically low.
In his usual fashion, the president pleaded for patience from Americans.
"It didn't happen overnight," Obama said. "We weren't going to turn it around overnight."
That may be true, but the president who is seeking a second term is in danger of falling victim to a historical fact.
Over each of the past six months the economy has grown an average of 150,000 jobs. Since 1980, no president dating back to Carter has won a second term in office with average monthly job growth of less than 197,000 in the first six months of a re-election year. |
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Posted by Lou Dobbs Staff at 7:00 AM Email to a friend |
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