Robert Reich: The Stall Has Arrived

[xchrom]

http://www.nationofchange.org/stall-has-arrived-1336224494

The economy has stalled.

Friday’s jobs report for April was even more disappointing than March. Employers added only 115,000 new jobs, down from March’s number (the Bureau of Labor Statistics revised the March number upward to 154,000, but that’s still abysmal relative to what’s needed). We need well over 250,000 new jobs per month in order to begin to whittle down the vast number of jobs lost in the Great Recession. At least 125,000 new jobs are necessary each month just to keep up with an expanding population of working-age people.

With only 115,000 jobs in April, the hole is getting even deeper. Most observers pay attention to the official rate of unemployment, which edged down to 8.1 percent in April from 8.2 percent in March. That may sound like progress, but it’s not. The unemployment rate dropped because more people dropped out of the labor force, too discouraged to look for work. The household survey, from which the rate is calculated, counts as “unemployed” only people who are actively looking for work. If you stop looking because the job scene looks hopeless for you, you’re no longer counted. In the winter months — December, January, and February – hiring had seemed to pick up, averaging over 250,000 new jobs per month. Then the mini-surge stopped. The simplest explanation is that the mild winter across much of the United States gave an unusual boost to hiring then, leading to a correction by the spring.

Most of the job gains in April were in lower-wage industries – retail stores, restaurants, and temporary-help. That means average wages continue to drop, adjusted for inflation – continuing their long-term decline. Most of the new jobs that have been added to the U.S. economy during this recovery have paid less than the jobs that were lost during the downturn.

What does all this mean? Together with other recent data showing slower economic growth during the first quarter of this year, it’s safe to say the economy has stalled.

[MadHound]

1. Yes it has,

And sadly, it is going to get worse. The "recovery" was, and is, a joke, and now with the EU starting to tank, we'll be dragged down as well(the joys of globalization).

Of course this is where the 1% wants to go. After all, they won't be satisfied until we are back at serf status.

[newfie11]

2. just in time for election season

I can only hope people realize this is what the repugs have been pushing for.

[snappyturtle]

3. I think people are waking up...all over the world.

The election results in France and Greece will be interesting. Let's
see if citizens of the world are saying, "No" to conservatives
and austerity. I think the stall here is an indicator of a wait and
see of how goes the world. imho

[gulliver]

4. Republican austerity and deficit cutting.

Republicans managed to scare everyone into cutting the deficit and "suffering" (cuz, ya know, nothing that doesn't hurt can possibly work). The people have themselves to blame, unfortunately. Just what Americans need, Republicans steering them into mistake after mistake. Then they get to take the blame, because they could have seen through the Republicans easily.