As government officials and supporters of Keynesian economics will undoubtedly tout this month’s jobs report as a victory for recovery, the private sector understands the real story.
Of the reported 430,000 jobs created, only 41,000 were from the private sector. The vast majority of remaining jobs were temporary census workers, who, after the constitutional enumeration is completed, will be out of a job.
We’re glad that those who were on the unemployment rolls were able to get temporary work, even if it was with the government. The fact is, when you have a family to feed, it really doesn’t matter where that weekly paycheck is coming from, so long as you can pay the bills. But those who try to sell this job “growth” to the American people as a sustained, “V” shaped recovery are simply lying.
You cannot have sustainable recovery without the participation of the private sector, especially small businesses, because small business accounts for roughly 90% of all jobs in the country. And right now, small business is hunkering down, spending as a little as possible. Unlike government, which has a printing press, or large organizations like GM and TBTF banks which have no risk of failure because they are backstopped by American taxpayers, when a small business goes into the red they’re toast. Knowing this, most small business owners are not willing to take risks until they can be sure that things are getting back to normal. And, with regular discussions in congress about taxing everything from energy to soda pops, what small business owner is ready to make a long-term investment right now?
Believe Vice President Joe Biden’s prediction of 1.5 million new jobs created by the end of 2010 at your peril. Like 401k’s which have seen a bounce back since the March 2009 stock market lows, the job creation numbers we’re seeing today are nothing but paper gains.
THIS IS WHY I’LL NEVER VOTE AGAIN UNTIL WE HAVE AN INDEPENDENT THIRD PARTY. OUR DEMOCRAT AND REPUBLICAN POLITICIANS ARE THE SAME MONKEYS WITH DIFFERENT MASKS.
millions of H1B and L1 visas bringing into america skilled foreign workers to replace skilled american workers. no penalties for folks who employ millions of  illegals at low wages driving wage scales into the basement. outsourcing of millions of good paying jobs to india, china, mexice etc..bringing foreign car manufacturers into the south to employ non-union employees. free trade bringing into america goods made in child-labor sweet shops to undercut qualty goods made in america. on and on and on again…
I agree with what you say except that the unions certainly aren’t helping matters. Pensions are what put Ford, GM and Crapler in the red to begin with, not to mention cities, counties and entire states.
When the census workers get laid off and the thousands of teachers in cities and states get laid off the unemployment rate will go up. However do not underestimate the power of this govt to pull of lies
For example most of the stimulus is being spent right now to Dec of this year. So I expect by the fall election of an unemployment rate of their lies to be about 9%-8.5% just in time for the election.
Of the reported 430,000 jobs created, only 41,000 were from the private sector…………
In other words 389,000 additional burdens to American taxpayers. These 41k private sector jobs better be damned good ones.
Clusterfox, Good points! Seems that the right Govt policies would encourage fuller employment of Americans.
Yes, the Census and Stimulus are giving people jobs for a short period. As soon as their assignments are over the unemployment right goes back up.
Think there will be a second massive stimulus paid for by debt spending when the 1st one runs out?
Clusterfox, I’m with you that both parties are usually funded by the same big money but if indepentents start changing things right, big money will be after them, problem is money controls it all. I guess I am a political atheist, hard to believe in any of ’em.
How do they measure unemployment rate?
Are they count the ones who receive unemployment benefits or they count all the actual no-job working force?
I’m sure that there is some manipulation in the data. It’s like the statistics class in the university, where you could present crapy financial course as brilliant.
In my opinion unemployment is much higher. Don’t forget that there are homeless people, there are people who live from the community meals, people who live under bridges etc.
I’m sick and tired.
More stimulus is on the way. I believe this time around it will be direct checks to the consumer (much like Bush did), and maybe checks cut to businesses as well. More about this in the June Schaef report – coming out later this month.
schaef – I remember reading somewhere that if the idiots in warshing would have just split up the first stim pkg, we would all be driving new cars and have homes paid for.
Hmmm. You should read Paul Krugman if you want a laugh. He thinks that the 787Billion stimulus should have been over a trillion. Lord knows it will be well over that soon. God help us.
The government could not hide the jobs numbers from Americans now…
Two years ago? Maybe, now we are all waking up and seeing through this administration and their phony numbers.
AmericanSurvival.com
Over 6 million Americans will lose their unemployment benefits this year and will no longer be counted in the ‘ official ‘ unemployment statistics.
Shadowstats.com states that if the government were using the same equations used to measure unemployment during the Great Depression, the unemployment rate would now exceed 21 %. (Unemployment peaked at 25% during the Great Depression.)The current statistics are being used to manipulate the people into believing we are recovering from a recession.When the sleeping giant wakes up, the pandemonium could be horrific.There are a lot of criminals and entitlement-minded people out there that will simply ‘ take ‘ what they want.
(Search,,,,sprott july 2009,,,the one hour meltdown grandpappy info,,,.)
The 6 million people that lose their unemployment benefits this year will no longer have ‘ any ‘ money for food or shelter.Gear up folks.
@wheedle – I’m not worried about the folks about to run out of unemployment benefits. They’ll just take that job at Wal-mart (still the nation’s largest employer, I believe) that Uncle Sugar has been paying them not to take. The people who worry me are the urban underclass, i.e., the welfare dependents who have never worked long enough to collect unemployment compensation. When they notice that their lifestyles are deteriorating, because Uncle is inflating the money supply faster than their welfare benefits, they’re going to re-enact the 1992 LA riots in all of our larger cities simultaneously. I hope to be safely ensconced at my country place when all this hits the fan, but it’s difficult to predict exactly when it will happen.
Gringo…There are NO jobs at even Walmart, thats why we are so f&#*’ed.