In An Alleged Booming Economy, January Jobs Reports Misses Expectations Again
Despite all of the happy talk recently about the Bush recovery, the decent GDP numbers, and the decent productivity numbers, we find out this morning that the January jobs report came in under analysts’ expectations, and that December’s jobs report was downgraded further. In total, over the last two months, the Bush economy generated only 279,000 jobs, and the Administration reduced the number of new jobs previously reported in the fourth quarter of 2004 by another 59,000 jobs.
Even more troubling, manufacturing and construction lost jobs last month (again), while the service sector continues to see a growth in temp help rather than permanent jobs this late into an alleged recovery. And the reason why the unemployment rate dropped to 5.2% today was because more people left the job market, leaving the labor force participation rate at its lowest level since 1988.
But at least Bush can now claim he created a whopping 119,000 net new jobs - during his whole first term - thanks though to government job growth. The number of private sector jobs remains lower than before the 2001 recession. And we have so downgraded our expectations that analysts would consider it respectable if the Bush economy generated 2.1 million jobs in all of 2005.
Boy, those tax cuts sure generated the jobs, didn’t they