The Employment Situation Summary released by the United States Department of Labor Bureau of Labor Statistics today shows that job growth has slowed considerably as the unemployment rate has risen by another percentage point bringing it to 9.2 percent unemployment.As I note in these reports, the summary also shows that 2.7 million people not working are not included into that 9.2 percent official figure.
In June, 2.7 million persons were marginally attached to the labor force, about the same as a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
Areas still at or above the official national average for unemployment are:
Alabama- 9.6%
California- 11.7%
D.C.- 9.8%
Florida- 10.6%
Georgia- 9.8%
Idaho- 9.4%
Kentucky- 9.8%
Michigan- 10.3%
Mississippi- 10.3%
Nevada- 12.1%
New Jersey- 9.4%
North Carolina- 9.7%
Oregon- 9.3%
Rhode Island- 10.9%
South Carolina- 10.0%
Tennessee- 9.7%
Data obtained from Bureau of Labor Statistics on the Local Area Unemployment Statistics page. (Right side)
NYT reports:
Economists said that the report was disappointing and reflected some of the headwinds facing the economy, such as higher energy prices, slack consumer confidence, government budget problems and supply chain disruptions from the earthquake in Japan. The debt ceiling debate may have also added to the uncertainties over tax rates and the possible impact on benefits.
The stock market fell sharply on the bleak jobs report.
“All that uncertainty is hanging out there,” said John Canally, economist and investment strategist for LPL Financial. “Unless hiring picks up, there is a reason to be concerned about whether we can grow at 2.5 percent for the rest of this year.”
Washington Democrats, including Obama continue to insist that "raising taxes" is paramount in the ongoing public battle over raising the debt limit while Republicans argue government needs to get it's spending habits under control and feel that regulations are stifling business growth as is the continued threat of raising their taxes.
Job growth, expansions, hiring and lowering the unemployment numbers are all dependent on businesses feeling safe and stable, something Washington is not offering them, therefore they are not growing.
This brings me a wonderful speech on the Senate floor made by Senator Marco Rubio as he discusses the whole debt issue, spending cuts, the reality of the taxes the Democrats want to add and after showing that all the Democrats' proposed tax increases, totaled up, would only cover "nine days and 23 hours of deficit spending."
The he moves along to jobs, which is right in line with what we are seeing today in the news about the unemployment numbers rising. (approximately 4:50 into the video at the bottom of this post, is where Rubio starts discussing jobs by way of creating the true revenue)
“So, here's the bottom line: These tax increases they're talking about. These so-called revenue enhancers, they don't solve the problem. So what do we do then? Because clearly we have to do two things.
"One, we have to hold the line on spending, if you keep digging yourself in the hole, the hole is going to bury you. But the other thing is, how do you start generating revenue for government so we can start paying down this debt? And that’s what the debate should be about.
“We already know these taxes they're talking about don't work. So, here's what works. Here is what I would suggest works in a balanced approach, using the president's terminology. Let's stop talking about new taxes and start talking about creating new taxpayers, which basically means jobs. Now, here in Washington, this debt is the number one issue on everyone's mind, and rightfully so. It is a major issue. But everywhere else in the real world, the number one issue on people's minds are jobs. And I'll tell you every other problem facing America -- a mortgage crisis, home foreclosure crisis, this debt problem -- all of these issues get easier to deal with if people are gainfully employed across America.
"And the impact that unemployment's having across this country is devastating. We hear about unemployment in facts and figures. They give us numbers, Sen. Ayotte, 'Oh, X percent people are unemployed.' Well, there's stories behind every one of those people. You know who a lot of these people are that are unemployed in America? They are people that have done everything they've been asked to do, and they've done it right. Maybe they served their country overseas, maybe they went to college and got a degree and now came back home. Maybe they worked for 10 or 20 years and did a really good job at work, and now, you know what, they can't find a job. Or maybe they were lucky enough to find a job after losing their original job, but it pays them half as much, and they work twice as long.
"That is the real face of unemployment in America, of people that are hurting. And our job here is to do everything we can to make it easier for them to find a job, not harder. And I think that's what we have to do when it comes to a balanced approach and when we talk about revenue.
“We don't need new taxes. We need new taxpayers, people that are gainfully employed, making money and paying into the tax system. And then we need a government that has the discipline to take that additional revenue and use it to pay down the debt and never grow it again. And that's what we should be focused on, and that's what we're not focused on.
“So you look at all these taxes that are being proposed, and here's what I say. I say we should analyze every single one of them through the lens of job creation, issue number one in America. I want to know which one of these taxes that they're proposing will create jobs. I want to know how many jobs are going to be created by the plane tax? How many jobs are going to be created by the oil company tax that I heard so much about? How many jobs are created by going after the millionaires and billionaires the president talks about? I want to know: How many jobs do they create?
“Because I'll tell you, and I'm going to turn it over to Sen. Ayotte in a second. I'm interested in her perspective on this as a job creator, as the spouse of a job creator who runs a small business, as someone like me who just came off the campaign trail. Let me tell you something. I traveled the state of Florida for two years campaigning. I have never met a job creator who told me that they were waiting for the next tax increase before they started growing their business. I've never met a single job creator who's ever said to me I can't wait until government raises taxes again so I can go out and create a job.
"And I'm curious to know if they say that in New Hampshire because they don't say that in Florida. And so my view on all this is I want to know how many jobs these tax increases the president proposes will create because if they're not creating jobs and they're not creating new taxpayers, they're not solving the problem."
Transcript of Rubios statement provided by RCP. Emphasis mine on certain portions of Rubio's words.
Video of Rubio's speech below:
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