Why Bernie Must Win: Unemployment Drops Because Half Million People STOPPED looking for work!

Unemployment drops to below 5%. Great news? Not exactly:

U.S. employers drastically slowed their hiring in May, adding just 38,000 employees, 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 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.

It is also likely to roil the presidential race, as the expected GOP nominee Donald Trump called it a “terrible jobs report” and a “bombshell” on Twitter. The figure comes just days after President Obama touted his economic record in Elkhart, Indiana.

Hiring in March and April was also revised lower, with job gains now just 123,000 in April, down from an initial estimate of 160,000. March was downgraded to 186,000 from 208,000.

Job gains have now averaged just 116,000 in the past three months, down sharply from an average of 230,000 in the 12 months ending in April.

Does anyone think Hillary, who is funded by Wall Street and Billionaire donors like the Pritzker family who support job losing, environmental destroying, slave labor enhancing trade agreements, will do anything about this if elected? Yeah, me neither.

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EdMass's picture

Well, just add that to the 94 million already in the same boat. Thank you O. Hell of a "recovery" we got going here.

Me too.

Crap

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Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!

Firesign Theater

Stop the War!

elenacarlena's picture

There are 74 million children in the US under age 18. There are 319 million total. That means 245 million adults including the elderly (why I couldn't find that number outright is a mystery). Even assuming that most elderly would like to work at least some to bolster their retirement income, you're saying that 38% of the adult population is "really" unemployed. Assuming that most elderly do not want to work, 40 million are 65 and older, reducing the total number of working age adults to 205 million, so 94 million out of work would be 46%. I realize the numbers are much higher than 5%. But this is almost half. I might believe it if it was un- AND under-employed. Could you please check your sources for that number?

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B. Joe King's picture

to make it safe would create a huge number of jobs. Educating a workforce without forcing them into debt wouldn't hurt either. Economic policy wise, Bernie isn't that different from FDR, objectively one of the greatest presidents of all time. That whole New Deal thing was pretty well loved.

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Gold is the wealth of kings; silver is the wealth of commoners; barter is the wealth of peasants; and debt is the wealth of slaves.

Who today, own both parties. They have cleverly transformed them into a party of right wing social policy and left wing social policy. both both parties cater to the TBTF banks and the multinational corporations that fund them.

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I've seen lots of changes. What doesn't change is people. Same old hairless apes.

B. Joe King's picture

the democratic party as it is today is closer to libertarianism than the republicans are.

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Gold is the wealth of kings; silver is the wealth of commoners; barter is the wealth of peasants; and debt is the wealth of slaves.

WindDancer13's picture

This does not bode well. Summer is traditionally bad for hiring, so there probably aren't gong to be any gains in the next few months. Minimal hiring now indicates a slow summer sales/spending season is expected which will then effect the fall months and so on and on.

From Pinnacle:

April and May
At the dawn of spring, many industries are anticipating an increase in business. Landscaping and hospitality, for instance, are building momentum and need to ramp up their workforces quickly.

From Monster dot com:

For those whose livelihood depends substantially on fair weather, spring is when hiring peaks. In the construction industry, hiring in April, May and June proceeds at double the pace of December, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS).

Tourism and hospitality hiring is also very strong in the spring. And businesses looking to hire professional workers before fall often do so now, before key decision makers start rotating out for summer vacation.

So we are probably also looking for a slow down in housing starts which IIRC is a positive indicator (when up) for the economy.

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We are what we repeatedly do. Excellence, then, is not an act, but a habit.--Aristotle
If there is no struggle there is no progress.--Frederick Douglass

More young folks living at home with their parent(s). Times are tough, or parents have become better roommates.

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Peace out, tmp.

The price one pays is endless lectures that start with "when I was your age..."

Disclosure: I was born in 1945.

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I've seen lots of changes. What doesn't change is people. Same old hairless apes.

This is too easy for Trump. A terrorist attack on American soil between now and the election and Trump will win.

Sigh.

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Peace out, tmp.

Borkrom's picture

This is so true. Something will happen by the general election and Trump will turn it to his advantage and that along with the economy will give him the election. Plus Clinton is not a very good candidate.

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With the environment under siege, the MIC out of control and increasingly dangerous with 7 billion plus on a finite planet, and inequality at the breaking point, we could not have two worse options.

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Peace out, tmp.

elenacarlena's picture

politics: Corporate servants or rich oligarchs.

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It's now the plans she states to this or that audience. Those are campaign speeches, and as we all know, the lying liar says whatever she has to to whomever she must in order to get a vote.

Once elected, she can finally forget about what she told everybody and do what she wants to.

Hillary Pardon.jpg

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Even if Loretta Lynch turns it down, as I expect her too, the fact of the recommendation would be an electoral bombshell. I'm sure arms are being twisted out of their sockets at the FBI.

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I've seen lots of changes. What doesn't change is people. Same old hairless apes.

The Aspie Corner's picture

that real unemployment would be closer to about 25 percent, maybe even 30 percent.

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Modern education is little more than toeing the line for the capitalist pigs.

Guerrilla Liberalism won't liberate the US or the world from the iron fist of capital.

Bob In Portland's picture

If by underemployment you mean not being able to pay for food and shelter on one forty-hour paycheck, I'd imagine you'd have a real high percentage.

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thanatokephaloides's picture

If by underemployment you mean not being able to pay for food and shelter on one forty-hour paycheck, I'd imagine you'd have a real high percentage.

emphasis mine

Diablo Bomb

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"US govt/military = bad. Russian govt/military = bad. Any politician wanting power = bad. Anyone wielding power = bad." --Shahryar

"All power corrupts absolutely!" -- thanatokephaloides

Roger Fox's picture

When U6 was at 17% or 24.6 million people. Lets figure real unemployment at that time was 30 million, 9 million jobs have been created since 2010.

Which is why I've called for creating 20 million jobs in infrastructure by spending 850 billion. The multiplier is 2.5, do the math 850 billion would create 21 million jobs.
http://portalseven.com/employment/unemployment_rate_u6.jsp

20 million jobs at 36k each would increase Social Security revenues by 90 billion a year, enough to ensure SS thru 2090. Raise the Min wage to $15, increase the SS income cap to 90% and we can give Seniors trying to get by on 13k a year in SS retirement benefits an immediate annual $1000 increase.

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FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

The lies are just more pronounced now that they have decided to ignore the jobs problem by accepting a new low for labor participation.

Those people affected aren't worth their consideration.

There's a legacy for Obama right there. Congrats to him.

latest_numbers_LNS11300000_1990_2016_all_period_M05_data.gif

Labor Participation Rate `1990 - 2016.jpg

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I've seen lots of changes. What doesn't change is people. Same old hairless apes.

Roger Fox's picture

The civilian workforce is about 156 million people, 4.7% of those are collecting unemployment checks, this is called U3, the number of people who get a check.

U6 is "long term unemployment" which be definition doesn't count everyone. U6 is 9.7%.

Wheres the lie, I don't see it.

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FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

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"Religion is what keeps the poor from murdering the rich."--Napoleon

pswaterspirit's picture

In the computer chip industry continue to fall. We are out through August with no sign of a turn around yet. My company operates in markets that are very stable industrial applications. Not looking good. An election in this climate could send it over a cliff.

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so I long ago disappeared from their statistics.

Two years into the recession I turned 50, and the job possibilities seemed to disappear. I HAVE been hired twice for full-time positions since 2008, but both companies turned out to be pretty dishonest and/or disgusting. One job was hourly and the company gave me fewer hours than were promised when they offered the job, and the other company let me go on day 28 of the 30 day probationary period -- even though I was the top producer in my department. Some types of discrimination remain perfectly legal in many states. Needless to say I'll never try to live in Utah again.

Neither job paid well or had many benefits, but that seems to be the norm now.

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You can try to fill it with freelance work depending on what you do, but the job situation for many is dire and desperate. Even finding one job doesn't mean it will last. Right to work laws are hurting people all over as well primarily because those laws are 'right for companies to fire more people at will' just because.

Contract companies call providing no details for jobs but want you across country for a position that will last only 3 or 6 months. They expect relocation on your dime with no remuneration for expenses in many cases and for jobs which can be cut short by weeks or months - at will - leaving people stuck with few options.

Democrats simply have washed their hands of the jobs issue now that they think they have the upper hand.

Those admissions that things are not rosy and great would also hurt Obama's legacy claims. I can't say i feel sorry for him or have any measure of sympathy. He compromised on major issues before he even should have given an inch bargaining.

The people suffered for it and he gets to wax poetic about the long road we have traveled and how far we still have to go after effectively giving the finger to the American people in the process.

If Obama is the greatest Democratic President of out lifetime, he's still set the bar low for toddlers to skip over - Slick Willy set the bar low enough for what Obama has and has not accomplished to be considered 'great'. That's not saying much either.

All the claims of 11th dimensional chess were nothing more than a sad game of checkers being played by someone willing to cave at nearly every opportunity presented.

And the political class laughs in the background - all on the same side representing the interests of the wealthy and turning their noses up at the remaining masses of commoners who mean nothing to them.

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shaharazade's picture

but sadly a common story. My husband and I arrived early to this nasty state of employment. We lived in San Fransisco in the 90's we both had skilled corporate techie jobs and were 'working poor' in a city that was impossible to live in on our combined wages. We went into business for ourselves when my husband in his late 30's was told by the cooperate CEO he was not 'eligible' to move up to a managerial level. No reason given.

He was in fact managing the statistical spec writing SF branch as the manager of this division was never at work being a strip bar addict with no knowledge of the services the company provided. So we poached the clients who knew where the work they appreciated was coming from and started our own business to business service company. Were still hanging in there but it's been a hard row to hoe as contractor/vendors are subjected to the ebb and flow of this insane economy. We have cash flow problems and have to be constantly hustling marketing for new clients. We moved to Portland Oregon and in 2008 lost half our income because our work dried up in the crash.

Were okay, I guess now but have never really recovered as this 'recovery' is not real. What a world. thank god I'm not in Utah and thank god our BtB is electronic and not limited to one region or culture. I hope you find a solution perhaps you should look outside the corporate beaten path. I have no idea what you do but sometimes it's better to strike out on your own and bootstrap your skills outside the offices of the corporate beast's marketplace.

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