It’s becoming more and more clear that the government has failed in its efforts to create a sustainable private sector recovery. The monetarist bank bailout has failed to create the economic recovery that Ben & Co. said it would generate. This morning’s job’s data is just one more piece of evidence that shows the private sector remains weak at best. We’re now almost two years since the peak in the credit crisis and the greatest government intervention in US history and we can’t even generate 100K+ jobs at the private sector level per month. Via the AP:
“Private employers added new workers at a weak pace for the third straight month, making it more likely economic growth will slow in the coming months.The Labor Department says companies added a net total of 71,000 jobs in July, far below the roughly 200,000 needed each month to reduce the unemployment rate. The jobless rate was unchanged at 9.5 percent.
Overall, the economy lost a net total of 131,000 jobs last month, as 143,000 temporary census jobs ended.
The department also says businesses hired fewer workers in June than it previously estimated. July’s private sector job gains were revised down to 31,000 from 83,000. May was revised up slightly to show 51,000 net new jobs, from 33,000.”
It would be unwise to overreact to this news, but it’s certainly disheartening for those who are looking for a job or those who are looking for an economic recovery to actually materialize. The duration of this recession in the labor market is truly depressing.
(image via chart of the day)