http://www.onenewsnow.com/Politics/Default.aspx?id=1040278The Bureau of Labor Statistics released its May employment report on Friday, showing a spike of 431,000 new jobs. But there is a catch on exactly what type of work these numbers reflect -- 411,000 of the 431,000 increase are temporary government Census workers.
The unemployment rate in May dropped from 9.9 percent in April to 9.7 percent. But economists note that 286,000 workers left the labor force because many gave up on finding a job, effectively reducing the labor force participation rate.
By contrast, hiring by private employers -- the backbone of the economy -- slowed dramatically. They added just 41,000 jobs, down from 218,000 in April and the fewest since January. To prevent the unemployment rate from increasing, about 125,000 new jobs are needed each month.
James Sherk, a senior policy analyst in labor economics of The Heritage Foundation, says that by the end of the year, many of those temporary government employees will be seeking jobs in the marketplace. But Sherk contends the private sector is not in a position to absorb them.
James Sherk (The Heritage Foundation)"People are holding tight -- [they're] waiting to see what [the government is] going to do, waiting to see what policies Congress is going to pass," he observes. "And as a result, that means less job creation, less new investment, fewer entrepreneurs hiring new workers...for their projects. And that's the core problem with hiring."
Sherk says the primary reason employers are not hiring is that the Obama administration's policies are making it difficult for private corporations to produce strong job growth.
In response to the numbers, the White House said "emphasis should be placed on the persistent trends rather than month-to-month fluctuations."
Topic: Gov't created most new jobs in May (Read 995 times)