“The economy is back!” They proclaimed in May. “Not so,” was the resounding reply.
Many in Washington (D.C.) boasted about jobs growth saying that in May 431,000 jobs were created. The problem is that 411,000 of those jobs were temporary government jobs (Census workers.) And that left only 41,000 jobs made in the private sector last month. That means less than 10 percent of the jobs created last month were in the private sector. And 41,000 is below the average (not above) for monthly jobs created (188,000.)
But there’s another catch. Jobs created in the government are a burden on the economy. Since the government is paying the Census employees, and the government is paid by U.S. citizens, government jobs burden the economy because those paychecks are put on the tab of real economy workers. That means that more than 90 percent of the Census jobs created last month were a burden on the economy.
Source: The United States Bureau of Labor Statistics
Lawrence Mishel, president of the Economic Policy Institute says, “These new data do not present a picture of a healthy private-sector growth and nothing closely resembling the job growth needed to dig us out of our very deep hole.” While our President proclaims that the economy is getting better “by the day.”
By July most of the Census jobs will be gone, leaving the private sector with less economy-draining jobs (maybe a nationwide party is in order?) But unfortunately, because of the evaporated jobs, the months following the Census generally show net losses.
This is why the less government there is, the more (real) economy we have.