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“It’s not a jobless recovery. That is an incorrect phrase,” he told Amanpour.
Goolsbee is correct in one fashion. It can’t be a recovery if it is jobless. But he is way wrong on a couple of points (also from the HuffPo link):
Austan Goolsbee, who heads the president’s Council of Economic Advisers, says the addition of a million new jobs over the past six months shows “we have improved a long way from when the economy was in rescue mode.”
My bold. Now a million new jobs over the last six months sounds good, right? Not so fast there Bucky. In an economy that needs to add roughly 125K jobs every month just to maintain status quo (that would be 750K jobs for a six month period), then a million jobs in six months doesn’t begin to put a dent in the 14 or so millions of unemployed, much less the un and underemployed numbers sitting somewhere between 25M and 30M.
But wait, it gets worse for Mr Goolsbee and his figures. Being the somewhat anal retentive person that I am, I went back and looked at the blog posts I had done starting in December 2010 based on the BLS report on the first Friday of each month for the month just past. Other than the report for February 2011, I have a post that covers the jobs number for each month going back to November 2010′s figures and for February 2011, I found a link to a site that includes a PDF with the appropriate numbers:
Now I actually went back seven months rather than six months and using information gleaned from the monthly BLS press release for jobs created, I still only come up with 784K jobs. And I haven’t accounted for the little nugget in this past Friday’s report that the March and April numbers were revised down 39K, placing the seven month total at 745K jobs created. 745K jobs created instead of the 875K jobs needed just to maintain the status quo, still leaving the 14M unemployed and the 25M to 30M un and underemployed. No wonder McDonald’s had over a million applicants for their summer hiring binge. And made up the bulk of the “new jobs” for May.
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