The media has popped out the champagne this morning and are cheering exuberantly at May’s jobs numbers. 175,000 jobs were created in the month of May beating expectations. Although this number is in the just treading water category, the Obama Propaganda media is proclaiming this as proof we are in an era of renewed Prosperity. Some CNBC talking head even said that this economy has a 90’s feel to it. They ignore the fact that Labor force participation rate is still at historic lows, hours worked and wages were flat, but it does not matter to the media. It’s all about convincing Americans that times are good and that Obama is awesome.
Despite anticipation of a spring-into-summer swoon, the U.S. economy continued to create jobs at a relatively steady pace in May, adding 175,000 positions as the unemployment rate ticked higher to 7.6 percent.
Economists expected nonfarm payrolls to grow by 170,000 in the month after an initial reading of 165,000 in April, which was lowered to 149,000.
An alternative unemployment measure that includes the underemployed and those who have quit looking edged lower to 13.8 percent.
“The employment report does not look too bad after all, which should soothe recent concerns over a slowing for the US economy in response to domestic fiscal policy and external headwinds,” Andrew Wilkinson, chief economic strategist at Miller Tabak, said of the report.
[….]
The unemployment rate had been moving lower in large part because of a reduction in those looking for jobs. That metric, the labor force participation rate, ticked higher to 63.4 percent after hitting a 35-year low in March and April.
Services led job creation, while retail and the food service industries also contributed.
The numbers got a huge lift as well from a formula—called the “birth-death model”— that the Labor Department uses to estimate the number of jobs that new businesses created or lost. That estimate added 205,000 to the count.
It is very likely less than 175,000 jobs were created in May because the birth-death model might have inflated numbers. Regardless the facts do not matter to the Progressive Obama loving media. They will tout the jobs report all weekend to distract from Obama’s scandals. The media’s Obama Boom narrative is part of the reason no matter what revelations come out from the Obama scandals, his approval rating remains steady.
Back during the best days of the Bush economy which was not great either, the average during 2005-2006 was 150,000-175,000. The media claims it was stagnant growth and paled in comparison to the historical average. Now that its their beloved god-king Obama, they claim 175,000 is spectacular and gang busters. The media’s false Obama Boom narrative is no different than when the Soviets were claiming grain production was at all time highs, when they had food shortages. Sadly many Americans are looking for an excuse to like Obama, hence any news the media spins even if its not true, they will grasp on.
This is a cult of personality in regards to the love Americans have for Obama. I wish more on the Right would understand what they are dealing with and stop expecting some magical political silver bullet will do in Obama. We are stuck with this guy until 2017 and that is the reality.
Update: Zero Hedge digs into the jobs created and it turns out that 60% or 122,000 of the 175,000 jobs created were low wage positions.
The time has come to look at the quality component of the 175K jobs added in May, so without further ado, let’s drill down at where the growth was. Without much surprise, we find that as in months past, the bulk of the job growth continues to be concentrated in the lowest wage jobs:
- Leisure and Hospitality added the most jobs in May, 43K
- Retail Trade jobs rose by 28K
- Education and health added another 26K
- Temp jobs: the lowest of all paying jobs added another 26K
In summary – of the 175K jobs, 122K was to low wage occupations.
To be fair this has been occuring since 2000 when the 90’s Boom ended. Its obvious our economy has a structural problem and no amount of media cheering will change that.
Tags: May Jobs Report, The Obama Boom
