The question we are all asking ourselves is, “Where are the jobs?” It’s been over three years since the end of the Great Recession and our economy continues to struggle to create new jobs. Obama-lead stimulus packages have not impacted the growth in the job market that he had hoped for to lift us out of this no gain cycle.
The latest job numbers report tells the story. Even though the unemployment rate has edged down from 8.3% to 8.1%, only 96,000 jobs were added in the month of August and far from the 275,000 jobs needed per month for our economy to grow. We appear to be stuck in the “park” position.
The majority of jobs added were in the food services sector (+28,000), professional/tech services (+27,000) and in health care (+17,000). Utilities employment increased by 9,000, but reflects the return of workers who were off payrolls in July due to a labor management dispute. Financial/Insurance sectors added 11,000 jobs, while demand for temporary services has remained flat since January this year.
Manufacturing jobs continued to decline in August, losing another 15,000 positions. There was also a decline in motor vehicles and parts with fewer workers recalled in August as the auto industry continues to be cautious in managing their costs. Employment in mining/logging, construction, retail trade, transportation, warehousing, information and government remained unchanged.
Since the beginning of 2012, employment growth has averaged 139,000 jobs/month as compared to an average monthly gain of 153,000 jobs in 2011. Clearly, we are going in the wrong direction in our ability to create jobs. Another stimulus package will only add to our already mounting debt that will leave many paying higher taxes for years to come to pay off U.S.government debt.
12.5 million Workers remain unemployed while 8 million more are underemployed working in positions that is below their education and experience level. The number of long-term unemployed (those jobless for 27 weeks or more) is at 5 million and accounts for 40% of the unemployed.
We can do better than this! Where’s our leadership? It’s time for a change—the right change!