Phantom Jobs and Economic Recovery in America
'The recent growth-burst is built on monetary and fiscal policies
which are wildly expansionary, wholly unsustainable and will surely
soon come to an end.'
On May 6, headlines cheered the new jobs report, New York Times writer Motoko Rich headlining, "Payrolls Show Strong Growth but Jobless Rate Rises," saying:
"For three straight months, the nation's employers have delivered solid job growth, easing some concerns that the economy could be slowing."
Bloomberg.com's Timothy Homan said, at 244,000, "American employers in April added more jobs than forecast....indicating the world's largest economy is weathering the impact of higher fuel prices."
Wall Street Journal writer Sara Murray wrote:
"Job engine shifts to higher gear (as) companies cranked up hiring in April to the fastest pace in five years...."
In fact, labor force participation held steady at 64.2% for the fourth consecutive month, down from 66% in 2006. Moreover, economist Jack Rasmus estimates 25 million unemployed, a number showing downturn, not growth. He also explained that considerably more workers left the labor force than entered it, saying:
A recovering jobs market "does not experience that kind of massive number of discouraged workers leaving the labor force. Quite the opposite. A truly recovering labor market is characterized by large numbers of discouraged workers re-entering the labor force. Something else is going on here."