Obama scores another victory: Unemployment rate falls to 7.8 percent, hiring continues
National Monitor,
Mike Mitchell | January 05, 2013
The latest unemployment report is out and the Obama
administration can chalk up another victory in the fight against rising
unemployment in the U.S.
According to the latest unemployment report released by the U.S.
Bureau of Labor Statistics, nonfarm payroll employment rose by 155,000
in December, leaving the unemployment rate unchanged at 7.8
percent. Employment increased in health care, food services and drinking
places, construction, and manufacturing, according to the agency, and
will likely be welcomed by congressional Democrats and the White House.
Household Survey Data
The number of unemployed persons, at 12.2 million, was little
changed in December, according to agency officials. The unemployment
rate held at 7.8 percent and has been at or near that level since
September, making it the fourth month in which the nation as added just
under 200,000 jobs. In December, the number of long-term unemployed
(those jobless for 27 weeks or more) was essentially unchanged at 4.8
million and accounted for 39.1 percent of the unemployed. The civilian
labor force participation rate held at 63.6 percent in December. The
employment-population ratio, at 58.6 percent, was essentially unchanged
over the month, Labor officials said.
The number of persons employed part time for economic reasons
remained steady at 7.9 million. According to the report, in December 2.6
million persons were marginally attached to the labor force. (These
individuals are not counted as unemployed because they had not searched
for work in the four weeks preceding the survey.)
Establishment Survey Data
The latest unemployment report found that a number of sectors
continue to add jobs despite consumer pessimism. According to the Labor
Department, health care employment continued to expand in December,
adding 45,000 jobs. Job gains also occurred in ambulatory health care
services and in hospitals, which added an estimated 50,000 jobs. In
December, employment in food services and drinking places also rose
by 38,000, making it the second largest provider of jobs in December.
Construction added 30,000 jobs in December, led by
employment increases in construction of buildings and in
residential specialty trade contractors. In December, manufacturing
employment rose by 25,000, with small gains in a number of component
industries.
Among the biggest disappointments were the numbers relating to
seasonal employment. Employment in retail trade changed little in
December, after increasing by 143,000 over the prior three months.
Within the industry, employment in clothing and accessories stores fell
by 19,000, following gains that totaled 55,000 over the prior three
months.
Meanwhile, the change in total nonfarm payroll employment for October
was revised from 138,000 to 137,000, and the change for November was
revised upwards from 146,000 to 161,000.
White House, Democrats Responds
White House officials responded to Friday’s report, saying that while
the report was the latest sign of success, sound economic policies must
continue to be pursued by members of Congress.
“While more work remains to be done, today’s
employment report provides further evidence that the U.S. economy is
continuing to heal from the wounds inflicted by the worst downturn since
the Great Depression,” said Alan B. Krueger, the White House Chairman
of the Council of Economic Advisers. “It is critical that we continue
the policies that are building 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.”
White House officials warned that lawmakers on Capitol Hill should
not attempt to use the report as the latest excuse to play politics.
“As the Administration stresses every month, the monthly employment
and unemployment figures can be volatile, and payroll employment
estimates can be subject to substantial revision,” wrote Krueger.
“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.”
The report was also welcomed by top congressional Democrats,
including House Minority Leader Nancy Pelosi. The California Democrat
used the opportunity to urge Republican lawmakers to focus on the middle
class and pass legislation promoting private sector jobs.
“Today’s jobs report shows our economy continues to create private
sector jobs, and with the start of the 113th Congress, we have an
opportunity for a new beginning to work together to strengthen our
middle class and small businesses and grow our economy,” said the
California Democrat.
Congressional Action and the Debt Ceiling Fight
Among the biggest hurdles facing the economy include
the upcoming fight to raise the nation’s borrowing limit. Top
Republicans have vowed to battle President Obama on the issue, saying
they will request steep spending cuts in social programs in return.
“When I first ran for Congress, I said that Washington was broken.
Unfortunately, that is still the case. The Senate deal fails to bring
any meaningful solution to reign in government spending or reduce the
budget deficit,” said Minnesota Congressman Erik Paulsen, a Republican.
“At a time when Washington borrows 46-cents on every dollar it spends,
we need a long term solution to cut spending and fundamentally reform
our outdated tax code.”
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Obama scores another victory: Unemployment rate falls to 7.8 percent, hiring continue
