http://economicpopulist.org/content/removing-jobs-job-1Have you noticed despite the never ending jobs crisis, Jobs are removed from the political dialog? The unemployed are no longer mentioned? Or if they are, we get absurd nonsense policy that will actually do the opposite? Ship more jobs overseas and lose jobs?
Paul Krugman calls out this sweeping the unemployed under the rug, in an op-ed, Against Learned Helplessness. Krugman calls for policies, that would actually work, to create jobs.
we could have W.P.A.-type programs putting the unemployed to work doing useful things like repairing roads — which would also, by raising incomes, make it easier for households to pay down debt. We could have a serious program of mortgage modification, reducing the debts of troubled homeowners. We could try to get inflation back up to the 4 percent rate that prevailed during Ronald Reagan’s second term, which would help to reduce the real burden of debt.
Right on Krugman and if only politicians would follow the call. What Krugman doesn't mention is the trade deficit or confronting China on currency manipulation, which once again, we get more inaction by Geithner on China:
The Obama administration on Friday declined to cite China for manipulating its currency to gain trade advantages against the United States but said the pace of the currency's rise against the dollar needs to be accelerated.
The Treasury Department noted that China has been allowing its currency to rise against the dollar since last June, but it said Beijing needs to make more rapid progress. America's trade deficit with China hit a record high last year.
The department's finding came in a report it must submit to Congress every six months determining whether other countries are manipulating their currencies. American manufacturers have been pushing for China to be cited. That could result in penalty tariffs on Chinese imports.
U.S. manufacturers believe China's currency is undervalued against the dollar by as much as 40 percent. This makes Chinese goods cheaper in the U.S. market and American products more expensive in China.
ADP Employment Report Only 38,000 Private Sector Jobs Added in May 2011
http://economicpopulist.org/content/adp-employment-report-only-38000-private-sector-jobs-added-may-2011ADP is reporting the service sector created 48,000 jobs while the goods sector lost 10,000 jobs. The ADP tab on manufacturing is down 9,000 jobs for the month. 6,000 jobs were lost in financial services as well. This correlations to the recent initial unemployment claims reports, which spiked up past 400,000, and are staying there.
Construction dropped 8,000 jobs and the ADP notes over 2 million construction jobs have been lost since the start of the Great Recession.
We take the ADP report with a grain of salt, especially on a monthly basis. Why? Because there is a mismatch against the BLS jobs report. To date, the number of private nonfarm payroll jobs ADP reports versus what the BLS reports and on a month-to-month and even cumulative basis don't match. This monthly error is often large, especially when looking at small job growth overall (< 400,000 jobs per month) on a month to month basis.
Below is the cumulative difference between what the ADP reports as the private nonfarm payroll jobs vs. the BLS (ADP minus BLS). This line shows the divergence, over time in number of nonfarm private payroll jobs reported between the two reports. This post will updated to include the May BLS numbers when released on Friday.
in short -- no new net jobs since 2000.
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