The Loss Of Government Jobs Is Holding Back The Economy

[Lakhota]

By Bryce Covert

The jobs report out this morning was full of good news: unemployment fell to 7.5 percent as the economy added 165,000 jobs, while big upward revisions to the past two months’ jobs numbers were added. The private sector carried those figures, adding 176,000 jobs in April. Yet the number was dragged down by the loss of 11,000 public sector jobs.

This has been a steadily recurring trend with each monthly jobs report: even when the private sector adds a solid number of jobs, the overall figure is pulled down by losses in the public sector. 741,000 jobs have been lost in the government sector since the beginning of the recovery period in June 2009, with 89,000 gone since this time last year.

Overall, the government has shed 718,000 net jobs since President Obama took office. While often accused of bloating the government, the trends show exactly the opposite: Obama has overseen a sharp decline in public sector payrolls as compared to his predecessor President George W. Bush, as can be seen in this chart from Calculated Risk:

More: The Loss Of Government Jobs Is Holding Back The Economy

Calculated Risk: Public and Private Sector Payroll Jobs: Bush and Obama

Starving the Beast - NYTimes.com

The Unemployment Rate Would Be A Full Point Lower Without Public Sector Job Losses

It doesn't take an economics genius to know this is a real drag on the economy and recovery.

 

[SFC Ollie]

According to your link:

A big difference between Mr. Bush's tenure in office and Mr. Obama's presidency has been public sector employment. The public sector grew during Mr. Bush's term (up 1,748,000 jobs), but the public sector has declined since Obama took office (down 718,000 jobs). These job losses have mostly been at the state and local level, but they are still a significant drag on overall employment.

 

[Yurt]

laktose fails again

 

[Spoonman]

so I see lakhota has finally wised up to Obama's faiiure

 

[Lakhota]

Why is the OP a fail? Government (public sector) job losses are government (public sector) job losses. Obama has tried to stimulate the public sector but Congress keeps blocking him.

 

[Agit8r]

I thought that this was so obvious, that it hardly required any comment.

Of course a loss in consumption will trickle down.

 

[Spoonman]

Why is the OP a fail? Government (public sector) job losses are government (public sector) job losses. Obama has tried to stimulate the public sector but Congress keeps blocking him.

Obama's only job stimulus came from government jobs he created with tax payer dollars. face it, we're broke. we don't have the money to keep paying for them

 

[Lakhota]

Why is the OP a fail? Government (public sector) job losses are government (public sector) job losses. Obama has tried to stimulate the public sector but Congress keeps blocking him.

Obama's only job stimulus came from government jobs he created with tax payer dollars. face it, we're broke. we don't have the money to keep paying for them

Face it - you don't understand macroeconomics.

 

[SFC Ollie]

Most Shrinkage in Government has been at the State and Local level............. Why? Because we the people can't afford to keep them.......

 

[Rozman]

So we take taxpayer dollars to create public sector jobs that don't produce anything so people that produce have less money to spend.And this is a good thing?

 

[Crackerjaxon]

The salaries of government employees are paid by taxpayers. Government employees contribute nothing to the economy.

 

[Lakhota]

Most Shrinkage in Government has been at the State and Local level............. Why? Because we the people can't afford to keep them.......

Google "austerity is hurting economy"...

 

[Spoonman]

Why is the OP a fail? Government (public sector) job losses are government (public sector) job losses. Obama has tried to stimulate the public sector but Congress keeps blocking him.

Obama's only job stimulus came from government jobs he created with tax payer dollars. face it, we're broke. we don't have the money to keep paying for them

Face it - you don't understand macroeconomics.

sure I do, macro economics Obama style = borrow money and put us in greater debt.

don't raise federal income tax so you can flap your gums and say see I didn't raise your taxes while behind the smoke and mirrors you cut federal funding to states so states have to raise your taxes, add all kinds of taxes into sale off goods, so everything costs the consumer more and no one has any surplus income to spend.

 

[Agit8r]

Obama's only job stimulus came from government jobs he created with tax payer dollars. face it, we're broke. we don't have the money to keep paying for them

Face it - you don't understand macroeconomics.

sure I do, macro economics Obama style = borrow money and put us in greater debt.

don't raise federal income tax so you can flap your gums and say see I didn't raise your taxes while behind the smoke and mirrors you cut federal funding to states so states have to raise your taxes, add all kinds of taxes into sale off goods, so everything costs the consumer more and no one has any surplus income to spend.

The states got most of the stimulus money, so they could remain solvent

 

[buckeye45_73]

Lets hire everyone on a govt job?

 

[Rozman]

Let's end unemployment Obama style....
Give everyone out of work a government job!

 

[Lakhota]

Government Spending Can Create Jobs - and It Has

Of Course the Government Can Create Jobs! - Forbes

Why You Should Love Government Deficits - Forbes

 

[Rozman]

Maybe these new hires can find out where my Federal tax refund is.
I filed 8 weeks ago!!!!

 

[Crackerjaxon]

Government Spending Can Create Jobs - and It Has

Of Course the Government Can Create Jobs! - Forbes

Why You Should Love Government Deficits - Forbes

Of course the government can hire people. There's no growth in doing that, though. It's simply robbing Peter to pay Paul.

 

[Lakhota]

Government Spending Can Create Jobs - and It Has

Of Course the Government Can Create Jobs! - Forbes

Why You Should Love Government Deficits - Forbes

Of course the government can hire people. There's no growth in doing that, though. It's simply robbing Peter to pay Paul.

Surely you know there is more to it than that.