New unemployment numbers "worse than expected." Huh?? Who expected better?? More importantly, why ??

The mornings headline: Unemployment remains the same (10%) but the jobs market, expected to lose only 8,000 jobs, lost 85,000.

The Obama Administration has done pathetically little to increase the jobs supply. They tout the notion that we can have a "recovery" without a jobs expansion but is that really possible? Certainly, Obama can find "experts" who will say such things. We as a listening audience are accustomed to hearing that kind language. But in the end, a "recovery" that does not include substantial jobs increases is indicative of an economy that is moving on without benefitting its citizenry.

Today is the day Obama had hoped he could continue to brag about his accomplishments as the nation's chief economic architect. His December report included a two-tenth decrease in the unemployment benefit receiving rate, from 10.2 to and even 10 points and only 11,000 jobs were lost to the economy during the November - down from a recession high of 600,000. Obama took these numbers and made a speech out of them. Remember? "Best economy report in two years," he said. Wow !!! He forgot to mention, however, that two years ago, the unemployed benefit rate was 4.8%. He failed to mention that the reason why the job-loss number was down to 11,000 was more the result of the fact that so many jobs have been cut from this economy that we are at near bottom -- there aren't that many jobs to cut.

Today, we have a very different report. Unemployment was, again, set at 10% -- no change. And that 11,000 number, jobs cut from the economy and no longer available ? Instead of going down to 8,000 as some had "expected," that number increased 8 times to 85,000, reversing the gains made over the past two months. This came as a surprise to the Administration and its supporters. A shock to some.

And that is the most frustrating of all aspects of this report - the fact that the Administration is so out of touch with reality that it actually thought the job-loss problem had been solved !!! He will be giving his State of the Union address later this month. He will not get to report that the "state of the Union is good," as Bush and his predecessors have reported. 4.8% unemployment ?? That is not going to happen during Obama's administration of this economy. . . . . that is the state of the Union, sad but true.
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Facts in review:

"Unemployment" - underemployed - total not working full-time
understand that "unemployment" as a percentage, i.e. 10% under Obama or 4.8% under 7 1/2 years of Bush, is in reality the measure of those currently receiving employment benefits. As such, it is not a measure of unemployment but only those who lost their jobs and are on benefit. The actual unemployment percentage - those who are not working whether drawing benefits or not and those who have taken on part-time jobs but seek full time employment is much more difficult to find.

In May, when "unemployment" was at 8.9% (those drawing benefits), the Bureau of Labor Statistics recorded 15.8% unemployed whether on benefit or not for a total of 22 million unemployed. link

The work force numbers a total 153 million people. 15.270 million are currently drawing benefits or 10% of the work force. Link. ........ Extending the same ratio from May, the current total unemployed or under-employed, whether drawing benefits or not, is just under 19% or 26.1 million Americans out of work or under-employed.

Prospect for job related recession ending anytime soon:

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..................................enough said.

Unless otherwise noted, Midknigt Review writes its own news report and commentary as of the first of the year, 2010. This story by the editor (jds)
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