The October jobs report essentially agrees with the rest of the current data on the economy—the economy is growing slowly, too slowly to bring down unemployment rapidly. In fact, the unemployment rate rose to 7.9 percent in October and the economy created about 171,000 jobs, roughly equal to the usual number of new workers in the labor force.
The October report partly reversed the mysterious drop in the unemployment rate in the September jobs report. At the time, J.D. Foster, Heritage’s Norman B. Ture Senior Fellow in the Economics of Fiscal Policy, predicted that September’s jobs report would be sorted out later:
The September household survey is one to set aside to wait for a more reliable report next month, which will almost certainly reverse the odd results from September. If it does, then we have both confirmation of the power of statistics and of the weakness in the economy.
With the jump back up in the unemployment rate in October to nearly 8 percent, we have at least the beginnings of an answer to the mystery.
In addition to possible quirks in the way the government collects information on unemployment, the Administration is playing some more overt games with the economy, holding new regulations and even layoff notices until later in the year.
As research fellow Diane Katz described yesterday, the Obama Administration has missed two legally mandated deadlines to let them know about new regulations that are coming, adding to the overwhelming uncertainty they are facing.
Meanwhile, to keep too many pink slips from going out immediately, the Obama Administration has been encouraging federal contractors to break a law that requires them to notify employees of impending layoffs. The Administration has offered to pay the penalties for the companies if they will just hold off. As Heritage’s Hans von Spakovsky explained:
Massive defense spending cuts under sequestration are scheduled to hit on January 2, 2013. Defense contractors affected by the budget cuts would have to issue notice letters to employees by November 2 (four days before the election) to meet the January 2 start date for the spending cuts.
With businesses in such a holding pattern, it’s no wonder the recovery is sluggish. And the anticipation of Taxmageddon hitting January 1 is only adding to the crisis.
Not only will Taxmageddon mean individual tax increases—if you’re a middle-class family, your taxes will go up around $4,100—but the whole economy will also suffer. The Congressional Budget Office has said that unless Congress and the President act, we will be plunged into a new recession extending through 2013—when we haven’t even recovered from the previous one.
When the new Congress takes office on January 3, reversing Taxmageddon should be at the top of its to-do list. The congressional leadership and the successful presidential candidate should make clear right after the election that reversing Taxmageddon will be their top priority, to reassure businesses and employees as soon as possible. The economy cannot recover while businesses are hamstrung by government interference, looming regulations, and tax increases.
Quick Hits:
- Some utility crews that traveled to the northeast to help with Hurricane Sandy recovery were turned away from New Jersey because they were non-union workers.
- More than 1 million New Jersey residents were still without power last night.
- 37 Senators have signed a letter opposing ratification of any treaties during the congressional lame duck session.
- What’s President Obama’s plan for Medicare? Put simply, seniors will pay more. Read the new report from Heritage’s health care experts.
- Heritage is adding video to our Friday lunch chats! Join us for a Google hangout today at noon ET with Jennifer Marshall, director of domestic policy studies at Heritage, to talk about the meaning of “war on women.” Submit questions and hang out.
Does anyone still have any trust in the Obama administration? This administration lies about everything and has distorted the truth to a point that even a three year old sees the light.
Did you trust the Bush administration?
This isn't good. I don't trust the Obama Administration. If Obama was the CEO of a major corporation, he'd run it
further into the ground, and then he'd be fired by the Board of Directors, at the behest of the shareholders. Then
the Board of Directors would hire Mitt Romney to turn that corporation around.
This is no surprise, I mean let’s face it the Obama Administration has done little, if anything, to actually promote growth or create jobs. The rejection of the Key Stone pipeline is an excellent example. I’d bet, I can’t say for sure, but, after all the dust settles, the real unemployment number is closer to 14% or maybe higher. What is just over the top, if you just look at the last two debacles to face this administration, the aftermath of Sandy and Benghazi, how can anyone even consider him to be a leader. People got killed and are now dumster diving and Obama is campaighing in Vegas and Ohio. And to top it off resources are being taken away so they can run the marathon. We’ve all gone mad.
Choose wisely or #FreeAmerica will turn ugly! When reason fails, conflict to reclaim freedom is inevitable. #WorstPresidentEver must be one-termer.
Do you think the main stream ??? Press is going to report the turning away of the non-union workers??
That has to be the most riduculous thing I have ever heard of. Ask the residents what they want, Lines repaired or Union workers.
The Board of Directors is the American public! I vote to hire Romney immediately!
In view of Sect 9, Art 1, etc, how can the President spend without a budget?
I agree with Blair and John. US American Citizens can not afford another term with Obama. What has he done for us lately, more taxes, our income is going down now up and we are all just getting by. I don't trust anything that comes out of his mouth, it's just lies.
Is anyone surprised that Obama is lying to us once again. He has already proven that he cannot be trusted. He let 4 Americans die in Lybia so the "bump in the road" would not derail his election chances. Obama only cares about himself and being reelected. He has no honor. Vote him OUT!
I really do not understand why I am reading this here. I realize the liberal media would not report any of this, but there are routes to disseminate this info. Why is it not being done? This is basically 'preaching to the choir' as we are, I would like to think anyhow, the enlightened. This should be run in the same place as the jobs report, as the two are related. Sure, I can send this to friends that have not subscribed, but they are of like mind. Help me here Heritage.
Excuse me, in my angst I failed to mention that I was referring to 'the new regulations' section of this report. Thank you
If you leave out the state of California (not a bad idea), how can the numbers do anything but look better. I wonder which state was excluded in this report. Attributed to Mark Twain (and probably others) – there are lies, damned lies, and statistics.
I don't know if I read correctly, but I am certain I read an article yesterday that said, "Along with creating 171,000 new jobs there were 170,000 jobs lost leaving only a net gain of 1,000 jobs". To my dismay, I have not seen nor heard that repeated since that one time. Even our so called conservative media seems to ignore good material / damning material.
High unemployment that fluctuates during and after a recession ?
That’s never happened before. Has it ?
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
1981 7.5 7.4 7.4 7.2 7.5 7.5 7.2 7.4 7.6 7.9 8.3 8.5
1982 8.6 8.9 9.0 9.3 9.4 9.6 9.8 9.8 10.1 10.4 10.8 10.8
1983 10.4 10.4 10.3 10.2 10.1 10.1 9.4 9.5 9.2 8.8 8.5 8.3
1984 8.0 7.8 7.8 7.7 7.4 7.2 7.5 7.5 7.3 7.4 7.2 7.3
1985 7.3 7.2 7.2 7.3 7.2 7.4 7.4 7.1 7.1 7.1 7.0 7.0
1986 6.7 7.2 7.2 7.1 7.2 7.2 7.0 6.9 7.0 7.0 6.9 6.6
The Center For Immigration Studies (CIS) report titled 'Who Got Jobs During the Obama Presidency? Native and Immigrant Employment Growth, 2009 to 2012' reveal that, "since President Obama took office, 67 percent of ALL U.S. employment growth has gone to immigrants (legal and illegal). This president, like those before him, has chosen not to reduce immigration despite the worst job market since the Great Depression."
Being a Senior Citizen, and paying into Social Security even tho I am not working, I receive SS and still pay some SS each year, due to some extra income. Our Social Security was supposed to be there when we reitired, and Democrat President Lyindon Johnson, started using it for other projects. I am still paying into it, and have not had an income increase for a couple of years Now our Medicare is getting more expensive each year. OBAMA CARE is a Joke, that will cost us all Big Bucks if he gets relected. If we are to have Obama Care, the President, Senate and Congress and Staff should Have it also.