By the Numbers: Analysis of the September Jobs Report
Two years after the White House said the economy has “turned a corner,” the Department of Labor today reported 103,000 new net jobs were created last month, and that the unemployment rate remained unchanged at 9.1 percent. Today’s report shows how job creation is being undermined by the triple threat of higher taxes, more “stimulus” spending, and excessive regulation. Speaker Boehner talked about this triple threat recently in a speech to the Economic Club of Washington, DC. In that speech, he also emphasized the need to find common ground on solutions that will remove government barriers to job creation – a call to action that is even more urgent in light of today’s disappointing report.
Treading Water: the September Jobs Report
- Unemployment has exceeded eight percent every month since the President’s ‘stimulus’ spending bill was signed into law more than two and half years ago. Remember that the Administration promised the ‘stimulus’ would keep unemployment below eight percent and that it would help create jobs ‘immediately.’ Taking into account those who take part-time work and are too discouraged to look for work, the total unemployment rate actually rose to 16.5 percent. These trends are not likely to improve: as The Wall Street Journal warns, “if the labor force increases continue to outpace the rises in the number employed, the headline 9.1% rate could move higher in the coming months.”
- The 103,000 net jobs created last month is lower than the average monthly job creation of 124,000 this year. Both numbers are far from what’s needed to drive the unemployment rate down, and even short of what’s needed to keep pace with naturally increasing new entrants into the job market. Worse still, average monthly job growth is slowing: since April employment has increased by a paltry 77,000 per month, half of what average job growth was in the first four months of the year. These trends are not likely to improve.
- Since the failed ‘stimulus’ was enacted, nearly 1.2 million jobs have been lost and unemployment has averaged 9.4 percent. For millions of families looking for work, the picture remains exactly the same: there are 14 million Americans who remain on the unemployment line. Not included in that total are one million Americans who have stopped looking for work because they don’t believe there is work available for them. The Department of Labor recently released a survey of available job openings in July, finding only 3.2 million openings for 14 million job seekers.
- Among unemployed Americans, 6.2 million – or 45 percent of the total – have been out of work for more than half a year. The average length of unemployment remained stuck at more than 10 months in September, an increase of more than 18 percent since this time one year ago. Taking into account those who take part-time work and are too discouraged to look for work, the total unemployment rate rose to 16.5 percent.
- While much attention is paid to the national unemployment rate of 9.1 percent, the unemployment rate among African-Americans is now 16.0 percent. Job-seekers of Hispanic or Latino ethnicity face an unemployment rate of 11.3 percent.
Opportunities for Common Ground
As Americans continue to ask ‘where are the jobs?, Speaker Boehner said today’s report “underscores the urgency for both parties to find common ground on common-sense solutions to create a better environment for private-sector job creation.” To that end, Republican leaders have outlined areas of common ground on the president’s “jobs bill,” including extension of 100 percent bonus appreciation, small business capital formation, and payroll tax relief.Unfortunately, Washington Democrats have concocted another scheme to raise taxes on small businesses and capital, the key ingredient for job creation in America. The tax increase proposed by Washington Democrats is a new 5.6 percent levy on 35 percent of small business income. This new permanent tax increase on small businesses – which would begin in 2013, but trigger an immediate chill on small business investment and hiring – is a permanent tax increase to pay for temporary stimulus measures, meaning over the long-term the entire package proposed by Washington Democrats is likely to do more harm than good.
A Plan for America’s Job Creators & Workers
Listening to the American people, Republicans continue to focus on implementing A Plan For America’s Job Creators to rein in the red tape ensnaring employers, pay down our debt over time without raising taxes, reform the tax code, and open new markets through trade agreements with Colombia, Panama and South Korea to make American employers more competitive.
This week, the House Ways & Means Committee moved expeditiously to advance long-stalled trade agreements with Colombia, Panama and South Korea. These trade agreements, estimated to create at least 250,000 new American jobs here at home, which had been languishing on the President’s desk since taking office were finally submitted to the Congress this week. House Republicans applaud the president for submitting these agreements and look forward to considering them in the House next week to finally level the playing field for American employers and workers. Read how the trade agreements with Colombia, Panama and South Korea will bring new economic opportunities and jobs to the U.S.
For more information on the Republican Plan for America’s Job Creators and to track House-passed jobs bills, visit jobs.GOP.gov.