Job Creation…The Myth

Today is the first Friday of the month. You know what that means, right? The monthly jobs report. So let the scrutiny begin!

Here’s what I gather. It ticked up one tenth of a point to 7.9%. However, even that is a vast misrepresentation of what’s happening in the job market.

The Weekly Standard sums it up like this:

Overall, in the last four years, the United States’ gross federal debt has increased 53 percent, food stamp enrollment has increased 46 percent, and the number of employed persons has increased just 0.15 percent. This picture, however, is even more ominous than it looks. While only 194,000 net jobs have been created since 2009, the working age population has increased by approximately 5 million—almost 25 times that amount. In other words, a shrinking share of working age adults have or are even looking for a job. The real unemployment number (U-6), therefore, is 14.6 percent.

All this is happening and looming around the corner is the sequestration set to happen in January. In January the Department of Defense will be cutting its workforce.  Regardless of how you feel about our current DoD budget and spending, this means that vast numbers of people will be added to the unemployed.

More people are entering the workforce than jobs being created and the layoffs keep on coming. It is a sad day when the rate of people receiving government assistance is growing at a faster rate than employment numbers.

((Government Assistance > Job Growth) + (GDP < Debt)) * (Interest + Unfunded Entitlements) = Financial Cliff