Obama visited Elkhart, Indiana this week and congratulated himself on the city’s improved economy and clearly suggested that it was a symbol for the rest of the country.
Yet the job report for May, which was just released today, is the worst in five years. Obama’s allies in politics and media are emphasizing the unemployment rate which has dropped to 4.7% but that’s nothing to celebrate.
The only reason the unemployment rate is down is because more Americans have left the workforce.
The Associated Press reports:
US gains just 38K jobs, fewest in 5 years; rate at 4.7 pct.
U.S. employers drastically slowed their hiring in May, adding just 38,000 jobs, the fewest in more than 5 years and a sign of concern after the economy barely grew in the first three months of the year.
At the same time, the unemployment rate tumbled to 4.7 percent from 5 percent, the Labor Department said Friday, its lowest point since November 2007. The rate fell for a problematic reason: Nearly a half-million jobless Americans stopped looking for work and so were no longer officially counted as unemployed.
The much-weaker-than-expected jobs report will raise doubts that the Federal Reserve will increase the short-term interest rate it controls at its next meeting in mid-June or perhaps even at its subsequent meeting in late July. Many analysts had expected an increase by July.
“The shockingly low payrolls gain in May provides further evidence that the economy is showing clear signs of slowing,” said Laura Rosner, an economist at BNP Paribas.
Donald Trump, who knows something about creating jobs, weighed in on Twitter:
Terrible jobs report just reported. Only 38,000 jobs added. Bombshell!
— Donald J. Trump (@realDonaldTrump) June 3, 2016
The Wall Street Journal has more:
May’s weak job growth and the revisions bring the average monthly job gains in the past three months to 116,000, a sharp slowdown from the average 219,000 growth over the prior 12 months.
“This was an unqualified dud of a jobs report,” said Curt Long, chief economist at the National Association of Federal Credit Unions, noting “the unemployment rate fell, but for the wrong reason as labor force participation declined for the second consecutive month.” The share of Americans participating in the labor force fell to 62.6% in May, down 0.2 percentage point from April.
This is just more evidence of what happens when the people in charge have no real world job experience, have never run a company and have never met a payroll.
The American economy would come roaring back without the constraints of big government programs like Obamacare and the weight of countless regulations imposed over recent years.
It’s time for a major regime change in Washington, DC.