Alan B. Krueger, Chairman of the Council of Economic Advisers, released a statement about the positive job numbers released by the Department of Labor.
“While there is more work that remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to recover from the worst downturn since the Great Depression. It is critical that we continue the policies that build an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007,” said Alan B. Krueger.
Alan B. Krueger points out the importance of building on the progress of the last few years. Krueger is encouraging Congress to passed needed legislation.
“President Obama has proposed an extension of middle class tax cuts that would prevent the typical middle class family from facing a $2,200 tax increase next year. In addition, to create more jobs in particularly hard-hit sectors, President Obama continues to support the elements of the American Jobs Act that have not yet passed, including further investment in infrastructure to rebuild our Nation’s ports, roads and highways, and assistance to State and local governments to prevent layoffs and rehire hundreds of thousands of teachers and first responders,” Krueger concluded in his statement.
The report from the Bureau of Labor Statistics (BLS) shows that private sector establishments added 172,000 jobs last month, and overall non-farm payroll employment rose by 163,000. The economy has now added private sector jobs for 29 straight months, for a total of 4.5 million jobs during that period.
The household survey showed that the unemployment rate ticked up to 8.3% in July (or, more precisely, the rate rose from 8.217% in June to 8.254% in July). Acting BLS Commissioner John Galvin noted in his statement that the unemployment rate was “essentially unchanged” from June to July.
The establishment survey indicated that manufacturing employment continues to expand and manufacturers added 25,000 jobs in July. After losing millions of manufacturing jobs in the years before and during the recession, the economy has added 532,000 manufacturing jobs since January 2010 – the strongest growth for any 30-month period since June 1989. Within manufacturing, motor vehicles and parts added 12,800 jobs in July, its strongest monthly growth since January 2011, partly reflecting fewer seasonal layoffs last month. To continue the revival in manufacturing jobs and output, President Obama has proposed tax incentives for manufacturers, enhanced training for the workforce, and measures to create manufacturing hubs and discourage sending jobs overseas.
Other sectors with net job increases included professional and business services (+49,000), education and health services (+38,000), leisure and hospitality (+27,000), and wholesale trade (+9,200). Within leisure and hospitality, restaurant employment rose by 29,400 jobs. Government lost 9,000 jobs as State government payrolls fell by 6,000. Local governments shed 7,000 education jobs. Since February 2010, State and local governments have lost 485,000 jobs.
As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report and it is informative to consider each report in the context of other data that are becoming available.
One thing is certain. The numbers of jobs have grown for nearly 30 consecutive months. While none will rest until we achieve full employment, there is good reason to believe the light at the end of the tunnel is near.
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John is the author of an award-winning book, the 2010 Winner of the USA National Best Book award for African-American studies, published by The Elevator Group Mr. and Mrs. Grassroots: How Barack Obama, Two Bookstore Owners, and 300 Volunteers did it. Also available an eBook on Amazon. John is also a member of the Society of Midland Authors and is a book reviewer of political books for the New York Journal of Books