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"Weakest" Jobs Report In Five Years

- June 3, 2016

As Americans Continue To Struggle To Find Work In The Eighth Year Of Obama's Presidency, Hillary Clinton Simply Doesn't Get It

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TOP TAKEAWAYS

  • May's job report was the "weakest" since September 2010, adding only 38,000 jobs to the economy as businesses drastically slowed hiring and Americans dropped out of the workforce.
  • The real unemployment rate, including those under employed and not actively looking for work, is at 9.7 percent.
  • The workforce participation rate is at a near four decade low, dropping to 62.6 percent.
  • While May's jobs report is another indication that American workers and businesses continue to struggle under Obama's economic policies, Hillary Clinton believes that Obama deserves an "A" for those very policies.
  • Clinton's own policies would only continue the economic stagnation of the Obama years by shrinking the economy, killing jobs, and lowering wages.

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MAY'S JOBS REPORT CONTAINED AWFUL NEWS FOR THE ECONOMY

The Topline Numbers In May's Job Report Were Dismal

Total Nonfarm Payroll Increased By Only 38,000 In May. (Bureau Of Labor Statistics, Accessed 6/3/16)

In May, The Labor Force Participation Rate Decreased From 62.8 To 62.6 Percent. (Bureau Of Labor Statistics, Accessed 6/3/16)

  • The Labor Force Participation Rate Of 62.6 Percent Is At A Level Last Seen In February 1978. (Bureau Of Labor Statistics, Accessed 6/3/16)

The Number Of Workers Working Part-Time For Economic Reasons Increased From 5.96 To 6.43 Million. (Bureau Of Labor Statistics, Accessed 6/3/16)

The May Jobs Report Was The Weakest Since 2010, As Hiring Slowed And Americans Dropped Out Of The Workforce

Today's U.S. Jobs Report Was "The Weakest Performance Since September 2010." "Nonfarm payrolls rose by a seasonally adjusted 38,000 in May, the weakest performance since September 2010, the Labor Department said Friday." (Harriet Tory and Jeffrey Sparshott, "U.S. Added Only 38,000 Jobs in May," The Wall Street Journal, 6/3/16)

  • May's Jobs Reports Shows That "U.S. Employers Drastically Slowed Their Hiring." "U.S. employers drastically slowed their hiring in May, adding just 38,000, 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." (Christopher S. Rugaber, "US Gains Just 38K Jobs, Fewest In 5 years; Rate At 4.7 Pct." Associated Press , 6/3/16)
  • Mining Lost 10,000 Jobs, Information Jobs Fell By 34,000, And Manufacturing Lost 18,000 Jobs, In May. "What job growth there was came primarily from health care, which added 46,000 positions. However, mining lost 10,000 jobs, information-related jobs fell by 34,000 - the consequence of the recently resolved Verizon strike - while manufacturing lost 18,000." (Jeff Cox, "US Created 38,000 Jobs In May Vs. 162,000 Expected," CNBC, 06/03/16)
  • The Private Sector Only Added 25,000 Jobs In May, Down From 123,000 In April. "Instead, the private sector added just 25,000 jobs. Previous months' reports also saw sharp downward revisions, with March sliding from 208,000 to 186,000 and April going from 160,000 to 123,000." (Jeff Cox, "US Created 38,000 Jobs In May Vs. 162,000 Expected," CNBC , 06/03/16)
  • The Addition Of Just 38,000 Jobs In May Is "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." "U.S. employers drastically slowed their hiring in May, adding just 38,000, 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." (Christopher S. Rugaber, "US Gains Just 38K Jobs, Fewest In 5 years; Rate At 4.7 Pct." Associated Press , 6/3/16)

"Revisions Of Earlier Reports Reduce The Number Of Jobs Added In March And April By 59,000." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

The Labor Department Reported Unemployment Rate At 4.7% For The Month Of May, But Including Those Under Employed And Not Actively Looking For Work, The More Accurate Number Is 9.7%. "The Labor Department also reported Friday that the headline unemployment fell to 4.7 percent. That rate does not include those who did not actively look for employment during the month or the underemployed who were working part-time for economic reasons. A more encompassing rate that includes those groups held steady at 9.7 percent." (Jeff Cox, "US Created 38,000 Jobs In May Vs. 162,000 Expected," CNBC, 06/03/16)

  • The Decline In The Unemployment Rate From 5 To 4.7 Percent Occurred Because "Nearly Half A Million Jobless Americans Stopped Looking For Work And So Were No Longer Officially Counted As Unemployed." "At the same time, the unemployment tumbled to 4.7 percent from 5 percent, the Labor Department said Friday in its monthly unemployment report. The rate, to its lowest point since November 2007, fell for a problematic reason: Nearly a half-million jobless Americans stopped looking for work and so were no longer officially counted as unemployed." (Christopher S. Rugaber, "US Gains Just 38K Jobs, Fewest In 5 years; Rate At 4.7 Pct." Associated Press , 6/3/16)
  • "The Unemployment Rate Was 4.7% In May, Showing That 7.4 Million Americans Who Wanted A Job Couldn't Find One Last Month." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

"The Much-Weaker-Than-Expected Jobs Report Will Raise Doubts That The Federal Reserve Will Increase The Short-Term Interest Rate." "The much-weaker-than-expected jobs report will raise doubts that the Federal Reserve will increase the short-term interest rate it controls at its next meeting in mid-June or perhaps even at its subsequent meeting in late July." (Christopher S. Rugaber, "US Gains Just 38K Jobs, Fewest In 5 years; Rate At 4.7 Pct." Associated Press, 6/3/16)

"Analysts Had Predicted The Creation Of About 158,000 Jobs, An Unemployment Rate Of 4.9 Percent, And An Increase In Hourly Earnings Of 0.2 Percent, According To A Bloomberg Survey Of Economists." (Marianne Levine, "Economy Added Only 38,000 Jobs In May," Politico , 6/3/16)

Markets Reacted Negatively To The Dismal Jobs Numbers

"It's Been Awhile Since An Employment Report Carried This Much Weight With Investors." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

Global Stocks Fell After May U.S. Jobs Report Showed "Dramatic Slowdown In Hiring." "Global stocks fall after headline figures on the U.S. jobs report showed a dramatic slowdown in hiring in May." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

  • S&P Futures Fell 0.3% And Stocks In Europe "Wipe Out The Day's Gains To Trade Down 0.1%." "S&P futures fall 0.3%, while stocks in Europe wipe out the day's gains to trade down 0.1%. Changes in futures do not necessarily reflect market moves after the opening bell." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

Economic Reporters And Headlines Were Taken Aback At How Bad The Numbers Were

The Wall Street Journal Headline: "U.S. Added Only 38,000 Jobs In May" (Harriet Torry and Jeffrey Sparshortt, "U.S. Added Only 38,000 Jobs In Many," The Wall Street Journal, 6/3/16)

Bloomberg Headline: "Employers In U.S. Add 38,000 Workers, Fewest In Almost Six Years" (Shobana Chandra, "Employers In U.S. Add 38,000 Workers, Fewest In Almost Six Years," Bloomberg, 6/3/16)

The Huffington Post Headline: "The Latest Jobs Report Badly Misses Estimates" (Shane Ferro, "The Latest Jobs Report Badly Misses Estimates," The Huffington Post, 6/3/16)

The Associated Press Headline: "US Gains Just 38K Jobs, Fewest In 5 Years; Rate At 4.7 Pct." (Christopher S. Rugaber, "US Gains Just 38K Jobs, Fewest In 5 years; Rate At 4.7 Pct." Associated Press, 6/3/16)

The Wall Street Journal Economics Editor Sudeep Reddy: "Bad: Just 38,000 Jobs Added In May, The Weakest Gain Since 2010, Worse: Prior Two Months Revised Were Down By 59,000." (Sudeep Reddy, Twitter Feed, 6/3/16)

 

 

Chief Economics Writer For FiveThirtyEight Ben Casselman: "Drop In The Unemployment Rate Is NOT Good News." (Ben Casselman, Twitter Feed, 6/3/16)

 

 

"The Number Is Out And It Doesn't Look Good ." "The number is out and it doesn't look good. 38,000 jobs added. That's the lowest in a long, long time. Unemployment rate falls to 4.7%." (WSJ Staff, "May Jobs Report: Everything You Need To Know," The Wall Street Journal's Money Beat, 6/3/16)

Politico's Marianne Levine: The May Jobs Report Was "Unexpectedly Poor…" "The Bureau of Labor Statistics attributed part of the unexpectedly poor job growth - the worst since September 2010 - to the recent Verizon strike, which sidelined about 35,000 telecommunications workers. Parties to the strike reached a tentative contract on May 27." (Marianne Levine, "Economy Added Only 38,000 Jobs In May," Politico , 6/3/16)

Chief Market Strategist At Natixis Global Asset Management, David Lafferty, Said That The Poor Jobs Report In May Will Make Fed Hikes A Lot More Difficult In The Months To Come. "'It makes it a lot tougher for the Fed, clearly. It now puts them in an awkward position of having to justify higher rates into a slowing job market,' said David Lafferty, chief market strategist at Natixis Global Asset Management. 'I don't think history would look very favorably on that.'" (Jeff Cox, "US Created 38,000 Jobs In May Vs. 162,000 Expected," CNBC , 06/03/16)

Economist Diane Swonk: "The Losses Were Deeper And More Broad-Based Than We Expected." "'Boy, this is ugly,' said Diane Swonk, an independent economist in Chicago. 'The losses were deeper and more broad-based than we expected, and with the downward revision to previous months, it puts the Fed back on pause.'" (Patricia Cohen, "Sharp Fall In U.S. Hiring Lowers Chance Of Rate Increase By Fed ," The New York Times , 6/3/16)

AS THE ECONOMY CONTINUES TO STRUGGLE, CLINTON HAS PRAISED OBAMA FOR HIS PERFORANCE AND PROMIES TO DOUBLE DOWN ON THE SAME FAILED ECONOMIC POLICIES

While Americans Struggle To Find Work And Financial Markets Reel, Clinton Still Thinks Obama Deserves An "A" For His Economic Policies

In October 2015, Clinton Gave The Obama Administration An "A" For Its Overall Performance, Including The Clinton-Obama Economy. CLINTON: "I'd give him an 'A.' I don't think he gets the credit he deserves for saving our economy from falling into a great depression, for saving the auto industry which represents millions of jobs up and down the supply chain, for beginning the crackdown on Wall Street abuses with Dodd-Frank, for getting the Affordable Care Act passed, for really being as responsive as he could possibly be given the obstructionism that he faced with the Republicans in Congress." (Hillary Clinton, Remarks In An Interview With The Boston Globe, Keene, NH, 10/17/15)

Click To Watch

Since Obama Took Office, The Average Duration Of Unemployment Has Increased From 19.8 To 26.7 Weeks. (Bureau Of Labor Statistics, Accessed 6/3/16) )

Since Obama Took Office, The Nation Has Only Gained 78,000 Construction Jobs. (Bureau Of Labor Statistics, Accessed 6/3/16)

Since Obama Took Office, The Nation Has Lost 276,000 Manufacturing Jobs. (Bureau Of Labor Statistics, Accessed 6/3/16)

Clinton's Own Policies Would Only Further Hurt The Economy, Cost Jobs, And Lower American Wages

The Wall Street Journal's James Freeman: "For Everyone Dissatisfied With The Obama Economy, The Clinton Agenda Promises To Make It Just A Bit Worse." "And although the Clinton tax hikes are ostensibly targeting the rich, with proposed changes such as a new surtax on high incomes and a Buffett Rule that sets a minimum tax rate on high earners, the Tax Foundation projects a decline of at least 0.9% in after-tax incomes for all taxpayers due to slower growth. So for everyone dissatisfied with the Obama economy, the Clinton agenda promises to make it just a bit worse." (James Freeman, "Hillary's $191 Billion Tax Increase," The Wall Street Journal. 1/26/16)

According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would "Reduce The Economy's Size By 1 Percent." "According to the Tax Foundation's Taxes and Growth Model, Hillary Clinton's tax plan would reduce the economy's size by 1 percent in the long run." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

  • Clinton's Tax Proposals Would Result In "311,000 Fewer Full-Time Equivalent Jobs." "The plan would lead to 0.8 percent lower wages, a 2.8 percent smaller capital stock, and 311,000 fewer full-time equivalent jobs. The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)
  • Clinton's Tax Proposals Would "Lead To 0.8 Percent Lower Wages. "The plan would lead to 0.8 percent lower wages, a 2.8 percent smaller capital stock, and 311,000 fewer full-time equivalent jobs. The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

When Accounting For The Economic Impact Of Clinton's Tax Plan, It Would Reduce American's After-Tax Incomes By An Average Of 1.3 Percent. "On a dynamic basis, the plan would reduce after-tax incomes by an average of 1.3 percent. All deciles would see a reduction in after-tax income of at least 0.9 percent over the long-term. Taxpayers that fall in the bottom nine deciles would see their after-tax incomes decline by between 0.9 and 1 percent." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

  • American's That Are In The Bottom 90% Of Taxpayers Would See A Reduction In After-Tax Income Of At Least 0.9 Percent Over The Long-Term. "On a dynamic basis, the plan would reduce after-tax incomes by an average of 1.3 percent. All deciles would see a reduction in after-tax income of at least 0.9 percent over the long-term. Taxpayers that fall in the bottom nine deciles would see their after-tax incomes decline by between 0.9 and 1 percent." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

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