Do you find yourself unemployed? Or you’re afraid of losing the job you have? Or your wages are stagnant because of the glut in the labor force? Get used to it. You’re living in the “new normal,” the by-product of globalism, founded on a 19th century trade theory that isn’t worth the parchment it was written on.
On Friday the Bureau of Labor Statistics released the employment report for the month of May. As employment reports go, it was a relatively good “new normal” report. Predictably, the economy added enough jobs to keep pace with the growth in the labor force – about 175,000, and unemployment (the government-massaged U3 figure) ticked upward to 7.6%. This is what counts as a “recovery” in the “new normal.”
Since the bottoming of the “Great Recession” in spring of 2011, when a real measure of U3 unemployment (one that holds the labor force as a constant percentage of the growing population) hit 11.9%, unemployment has improved to 10.3% – that in spite of deficit spending of $900 billion per year and money-printing by the Federal Reserve of the same amount. And the economy is actually slowing. It used to be that, two years into a recovery, unemployment would be back down to 4-5%. Today we’re more than double that figure.
In May, the “detachment from reality” index, which measures the gap between official U3 unemployment and a figure that more accurately holds the labor force as a constant percentage of the population, ticked downward only slightly from April’s record level, as 420,000 workers who had mysteriously vanished from the labor force suddenly reappeared, swamping the 320,000 people who found work according to the household survey (another equally unbelievable figure). Here’s a chart of the index: Detachment from Reality Index.
The number of unemployed fell for the 2nd month in a row to the lowest level since October, but still stands at over 16.5 million: Unemployed Americans.
Per capita employment rose for the 2nd consecutive month to its highest level since October: Per Capita Employment. Here, it’s important to note that the employment level reported in the household survey is lower than it was in November of 2008, in spite of the population growing by 10.4 million during those 4-1/2 years. Not a single person added to the population since 2008 has joined the labor force to provide themselves a source of income. A little hard to believe, isn’t it? Someone explain to me how population growth has helped the economy. None are joining the labor force, so none are contributing to the economic output and vitality of the country. If they’re not working, then they’re on the public dole.
And now Congress wants to exacerbate the situation by throwing the doors open to millions more immigrants. Everyone who would like to volunteer to give up their jobs so that we can put them to work, raise your hand. Anyone? I didn’t think so.