SAN FRANCISCO, CA --- Digest this fact. The economy generated 117,000 new jobs in July.
But a ccording to a Bureau of Labor Statistics, 38,000 fewer Americans had jobs in July than in June. Yes, that’s the case. 139,296,000 people were working in July, compared to 139,334,000 the month before, or a drop of 38,000.
Why? Enter the “discouraged workers.”
These are American workers who were unemployed but not out looking for work during the reporting period-- it shot up from 982,000 to 1.119 million workers, a difference of 137,000 (14 percent increase.)
So, while the economy added 117,000 jobs in July, 137,000 just dropped out of the job search market during the month, and were not included in the “official unemployment rate” (Department of Labor’s U-4 designation.)
So, if you add the unemployed with those who “marginally attached” to the work force --- those who‘ve stopped looking for work --- there’s been no change since last month.
Namely, 10.1 % of the American workforce are out of work. Worse, the average unemployed worker has been out of work for ten months. That’s been rising.
And it’s not just the unemployed that are feeling the economic blues.
In February, Gallup Polls reported 50 percent of those polled thought the economy was getting worse.
At the end of last month --- before the recent trillion dollar losses in the stock market --- 77 percent thought the economy is getting worse.
As I commented in my last post, it’s not the incumbent president who needs to worry by the nasty mood of the American worker/voter The Republican candidate will also have to convince the voters they have a plan to change the direction of the economy and bring back real job growth.
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