Don’t say “I told you so,” but I told you so.
I had surmised that behind the latest .1% downward tick in the unemployment rate there was in fact some bad news. And it turns out I was right.
While the American economy added 293,000 jobs last month, according to the separate household survey, the number of persons employed part time for economic reasons — “involuntary part-time workers” as the Labor Department calls them – increased by almost as much, by 278,000 to 7.9 million. These folks were working part time because a) their hours had been cut back or b) they were unable to find a full-time job. At the same time, the U-6 unemployment rate — a broader measure of joblessness that includes discouraged workers and part-timers who want a full-time gig — rose from 13.8% to 13.9%.
So the bottom line is easy to see. One tenth of one percent of the population got a job last month. (Yay!) But one tenth of one percent of the population also joined the ranks of the underemployed last month too. (Boo!)
The difference of 15,000 jobs is the real measure of employment growth. Those are the “good,” full-time jobs that we really need. And unsurprisingly Obamanomics isn’t creating very many of those jobs at all.
— Robert Stacy McCain (@rsmccain) May 3, 2013