May 2012 Employment Report: Unemployment up to 8.2%, Payroll Jobs WAY Below Consensus Estimates
The private sector continues to implicitly show its disdain for this patently anti-private sector president and his anti-private sector public policies.
With numbers derived from Econoday (2012) by way of the Bureau of Labor Statistics, the numbers are as follows:
One day after initial jobless claims spiked to 383,000 and 1st Quarter GDP indicated a paltry 1.9% growth rate and three days after an abysmal Consumer Confidence report of 64.9, payroll job numbers continued Barack Obama’s economic losing streak by coming in well below market consensus estimates of 95,000 to 206,000. Payroll jobs rose by only 69,000 in the month of May, while the U3 unemployment rate bumped back up to 8.2%. In addition, the number of Americans unemployed for six months or more rose from 5.1 million to 5.4 million. Revisions provided no comfort, as the BLS changed growth in payroll employment in March from 154,000 to 143,000 and in April from 115,000 to 77,000. (n.p.)
Upon hearing the jobs report, stock futures sank and oil has plummeted by over 4%.
Those are the numbers…now for the reality:
Corporate profits grew during the 1st Quarter by $1.669 trillion – a 14.7% y/y increase (Econoday, 2012) – yet private-sector job creation remains relatively static and even seems to be receding heading into the summer season. My liberal friends email me daily asking why private-sector businesses/corporations are holding their profits and tempering hiring.
Are you kidding me? You have a sitting president threatening to raise the taxes of both producers and production consumers the moment he begins his supposed second term. Would YOU spend your profits on ANYTHING knowing you’ll be in for a large tax increase in mere months?
Oh, and there is also the matter of persistent high gas prices…which have driven down demand across all sectors of the economy. But of course, who cares about demand when it drives nearly all consumption in a market economy?
I swear, it’s as though these people are born bereft of common sense, let alone a grain of basic economics comprehension.
Sooner or later – sooner, I think – the people in this country who still support Obama simply because he is “likeable” will awake to the reality of who and what he really is: A man hell-bent on destroying what we worked over 200 years building. How much longer will Americans ignore the absolute damage he is doing to our economy?
This is no longer an issue to be viewed in the abstract. Record deficits…increased taxes…these are all the tools of those who DESPISE the creation of wealth and a robust private sector. These developments are no longer in the rear-view mirror. They are impacting our quality of life and that of our friends, neighbors and family.
As we digest this string of telling economic numbers, never let go of the fact that there are two clear and distinct choices for president this fall. Say what you will about Mitt Romney (and I have, believe me…), the man damn sure knows how to encourage wealth creation and private-sector prosperity. Ask yourself not who is more “likeable” in choosing a president. Ask yourself who will be best able to restore America’s greatness…then cast your vote.
Econoday. (2012). Consumer Confidence. Retrieved from: http://mam.econoday.com/byshoweventfull.asp?fid=451383&cust=mam&year=2012&lid=0#top
Econoday. (2012). Corporate Profits. Retrieved from: http://mam.econoday.com/byshoweventfull.asp?fid=451383&cust=mam&year=2012&lid=0#top
Econoday. (2012). GDP. Retrieved from: http://mam.econoday.com/byshoweventfull.asp?fid=451383&cust=mam&year=2012&lid=0#top
Econoday. (2012). Employment Situation. Retrieved from: http://mam.econoday.com/byshoweventfull.asp?fid=451383&cust=mam&year=2012&lid=0#top