New unemployment numbers up
New unemployment numbers were just released, and unemployment went up from 9.1% in May to 9.2% in June. This puts the lie to Obama administration claims we are in a "recovery." That seems an inappropriate label for a situation in which unemployment is rising. CNBC reports:
Nonfarm payrolls rose only 18,000, the weakest reading since September, the Labor Department said on Friday, well below economists' expectations for a 90,000 rise.
Yet again, previous reported employment numbers have turned out to be inflated -- meaning that the public was fed overly optimistic numbers.
The government revised April and May payrolls to show 44,000 fewer jobs created than previously reported. The report shattered expectations that the economy was starting to accelerate after a soft patch in the first half of the year.
Of course, the official unemployment rate understates actual unemployment, since those who have given up searching for work magically disappear. Bloomberg reports that the real situation has gotten much worse than a .1% rise in the rate:
The so-called underemployment rate -- which includes part- time workers who'd prefer a full-time position and people who want work but have given up looking -- increased to 16.2 percent from 15.8 percent.
Facing the prospect of higher taxes, onerous new regulations (including ObamaCare obligation), and uncertainty over credit markets, employers are not hiring very much. That is a rational response to Obama's policies. The economy will not recover until the White House has a new tenant.