Private employers added 134,000 jobs in August, while the public sector added another 8,000 jobs. Headline unemployment ticked down 0.1 percentage points to 6.1 percent, but this decrease was due to fewer people actively looking for work rather than an actual increase in employment. This has consistently been the story during the 47 months of job gains.
Last month, 9.6 million people were counted as unemployed, 2.1 million were not counted as unemployed but are ready and willing to work, and another 7.3 million were employed in part-time work. These numbers indicate that private employers’ demand for workers is not creating enough opportunities for all those who want to work.
Unless hiring can break out from this slow trend, simple arithmetic indicates that it will be a while before the economy reaches full employment on its own. The share of the overall U.S. population that is employed—the broadest measure of employment—held flat at 59 percent in August and has barely budged since the job market began expanding in February 2010, according to BLS data. Before the Great Recession, more than 63 percent of Americans were employed.
Weal wage growth has decreased by 1% in the last year. This coincides with disappointing consumer spending numbers. These statistics are happening even while we continue to run huge deficits and now have a national debt of almost $18 trillion. And meanwhile the Federal Reserve has been pumping huge amounts of cash into the economy. The only beneficiary of these negligent polices has been Wall Street. What happens when that bubble bursts?
The only way out of the dilemma is to return to sound fiscal policies, redo the tax structures and lower the rates, and stop the over burdensome regulations. Allow the market place to determine winners and losers and not the politicians and regulators.