Economics, U.S. Economy

The Obama Jobs Gap is up to 15 million missing jobs

A much-needed reminder that despite the recent upturn in the jobs market, there is still an awfully big employment hole to fill, as JPMorgan economist James Glassman points out:

A useful way to assess the challenge for the US economy is to ask, How many jobs would need to be created to recover the ground lost in this last recession. Focusing only on official unemployment, currently 12,806,000 million are classified as officially unemployed. In a normal, fully-employed economy, the unemployment rate would be expected to be 4.5 to 5.0 percent. In that case, the natural number of unemployed people would be 7 to 8 million, respectively. So, for the unemployment rate to fall from 8.3 percent to 4.5 to 5.0 percent, the economy would need employ 6 million to 5 million people, respectively, of those who currently are unemployed.

What about the larger picture that includes the hidden unemployed? How many jobs are needed to restore the ratio of employed people to the total population back to where it was in 2007, prior to the economic downturn. Under normal circumstances, there would be 153,000,000 jobs, including parttime jobs that people hold voluntarily. Currently, however, the number of full-time jobs and those who are holding part-time jobs voluntarily stand at 138,189,000.

In other words, to restore the job market to the state it was in back in 2007, before the recession, would require the creation of 14.8 million jobs in today’s terms, a daunting task to say the least.

7 thoughts on “The Obama Jobs Gap is up to 15 million missing jobs

  1. Where is the good jobs news.
    When 1.2 million unemployed drop out of the labor force in one month, January, and are no longer counted as unemployed the unemployment rate goes down. When the average number of new applicants for unemployment benefits range between 350,000 and 375,000 per week, app 1,400,000 per month, and the number of jobs created are in the 250,000-270,000 per month there is a net loss of jobs. The spin that is put on these numbers by Obama, his spin-meisters, and the MSM is beyond simple dishonesty, it is the BIG Lie, pure propaganda for the Obama administration..

  2. Nevertheless, if an incumbent has the supoort of the MSM, they will likely be re-elected. It will be hard to unseat our Marxist-Muslim in Chief.

  3. All you have to do is cut corporate taxes, which punish corporations for making money.

    To pay for that, you would have to cut back on unconstitutional federal departments such as Energy, Agriculture, Education, HUD, HHS, and EPA, and abolish their unconstitutional regulations.

    Cutting regulations makes new businesses viable, so businesses that were previously forbidden, houses that were previously forbidden, products that were previously forbidden would become legal, and if helpful, lucrative.

    Lawyers, accountants, and crony capitalists would cry at first, but would find a new business model soon enough.

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