The Obama Boom continues to break all economic rules. Despite subpar growth and high oil prices, 227,000 jobs were added in the month of February. Although on the surface this is a decent number, when one reads closely the numbers are deceptive. 40,000 of those created were low paying temp jobs and 80,000 were restaurant jobs, which is not a steady income. Our economy has become a low wage jobs based economy.
The slow melt-up in employment continued during February as the economy added 227,000 new jobs while the unemployment rate held flat at 8.3 percent.
With warm weather helping to spur activity and as the European sovereign debt crisis receded into the background, the American economic engine continued its slow but steady drive toward recovery.
Economists had expected 210,000 net new jobs and the unemployment rate to hold steady at 8.3 percent.
Private payrolls in February grew by 233,000. Manufacturing added 31,000 jobs and services 203,000. Government subtracted 6,000 jobs from the total.
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Professional and business services added 82,000, though more than half were temp jobs. Health care gained 61,000, while hospitality — primarily bars and restaurants — contributed 41,000 for the month, while the industry has added a total of 531,000 jobs over the past two years.
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Long-term unemployment continues to pose the most vexing problem for the jobs picture. The average duration of unemployment edged lower but remains at 40 weeks. Those out of work for more than 27 weeks comprise 42.6 percent of the unemployed population.
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In fact, when adding the aging population and the decline in population rate against actual jobs created, the unemployment rate likely dropped just 0.04 percentage points since last August, according to an analysis from Nomura Securities economist Aichi Amemiya. According to the government’s measure, though, the rate dropped 0.8 percentage points.
The Pharaoh-in-chief and his Theban Priest media will crow about these numbers. In normal times 200,000 jobs a month would be something to brag about. The problem is most of these jobs are low paying and not what is needed to create careers and raise living standards. The low wage jobs economy was part of our problem before the recesssion. This is a structural problem which needs to be addressed.
As fuel prices rise, these job numbers will not hold up in the coming months. February could well be the last decent numbers. Even still, low wage and temp jobs are nothing to brag about. If a Republican was President the media would crucify them over this. Since this is our Pharaoh-god-king the media will cheer and hype up the numbers. The Obama Boom propaganda continues!
