January Jobs Report

The numbers by the government

The government reported that the economy added 157,000 jobs in January, 2013.

Let let us look in the numbers released by the Bureau of Labor Statistics (BLS) to see the real state of employment (click here to access data prepared by the BLS).

(Numbers in thousand—all figures are seasonally adjusted)

                                    Dec                  Jan

Civilian labor force:   155,511           155,654

Employed:                  143,305           143,322

Unemployed:              12,206             12,332

Unemployment rate:  7.8%                7.9%

Not in Labor Force:    88,839             89,008

Not in Labor Force—

But want a job:           6,750               6,631

—while the number of employed persons increased by 17,000 (143,322 – 143,305), the number of unemployed persons increased by 126,000 (12,332 – 12,206).

—true number of unemployed persons:  18,963,000 (12,332 + 6,631) in January as compared to 18,956,000 (12206 + 6750). This true number of unemployed persons those increased by 163,000 since last September 18,800,000 (12,082 + 6,718).

—civilian work force increased by 143,000 (155,654 – 155,511). These could be people who turned into working age. They could also include people who were previously counted as out of labor force.

More small US businesses letting people go than hiring

A latest Gallup poll showed no improvement in job growth in small businesses over the last 2 years. (read the report here)

Of those who are not looking to hire, the reasons are:

—don’t need any additional workers: 81%. No business growth leads to no employment growth. And with higher tax rate on the rich, they will be even less motivated to invest in business.

—worries about the U.S. economy: 66%. Higher taxes, debt ceiling, government’s money printing, and high number of unemployed (18.9 million) can’t lead to an improved economy.

—worries about the potential cost of health care (a.k.a ObamaCare): 61%

—worries about new government regulations: 56%

 

Ch3 Nguyen

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