WH Chart of the day: Job-creation stagnation
posted at 1:56 pm on September 10, 2013 by Ed Morrissey
If you feel as though the US is doing nothing but treading water on employment over the last couple of years, well …. the White House agrees with you. A new chart from the Obama administration shows that job creation and employment have essentially remained stagnant for the last 30+ months (via Taegan Goddard):
Business Insider’s Josh Barro is unimpressed, but perhaps not as unimpressed as he should be:
Adding jobs at a pace of about 2 million per year. August’s disappointing report doesn’t materially change that… The problem with the August report isn’t that it was bad; it’s that it wasn’t good. For the past few months, it had looked like the job situation was maybe getting better, with the pace of job growth speeding up to around 2.5 million a year. Now it’s becoming clear that we haven’t broken out of the funk.
The problem with that analysis is that it leaves out a critical context — population growth (as does the chart itself). We need to add about 150,000 jobs a month to keep up with population growth, which comes to 1.8 million jobs a year. At a pace of 2 million a year, it would take us 25 years to create enough jobs to catch up to the 5 million who have left the work force since January 2011, when the stagnation curve starts in this chart.