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98,000 Jobs Added to the Economy in March, Unemployment Is 4.5%

Tuesday, April 11th, 2017

The U.S. economy added 98,000 jobs in March and the unemployment rate declined to 4.5%, according to figures released this morning by the U.S. Bureau of Labor Statistics.

While the job growth was tepid in March, and the revisions for the numbers for January and February are weaker than earlier reported, the economy is continuing close to the trend of job growth that started under President Barack Obama. If we continue the trend of job growth over the past seven years he established, the economy will add another 25 million jobs in eight years. Oddly, the claim President Donald Trump has made is that he will create 25 million jobs.

Still, wage growth needs time to recover as does the share of workers employed so household incomes can recover to their 1999 peak. With modest job gains in March, the Federal Open Market Committee of the Federal Reserve that sets monetary policy needs to pause ahead of its proposed interest rate hike in June. The higher interest rates are meant to signal a return to normal, but we are not there, yet.

The biggest gains were in professional and business services (+56,000) and in mining (+11,000), while retail trade lost jobs (-30,000). Other sectors of note include health care (+14,000) and financial services (+9,000). According to BLS, construction employment saw little change in March (+6,000).

Employment in other major industries, including manufacturing, wholesale trade, transportation and warehousing, leisure and hospitality, and government, showed little or no change over the month.

Among the demographic groups of working people, the unemployment rates for adult women (4.0%), white people (3.9%) and Hispanic people (5.1%) declined in March. The jobless rates for adult men (4.3%), teenagers (13.7%), black people (8.0%) and Asian people (3.3%) showed little or no change.

This blog was originally posted on aflcio.org on April 7, 2017. Reprinted with permission.

The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

Monday, February 6th, 2017
The U.S. economy added 227,000 jobs in January in the last employment report of the the Barack Obama administration. Unemployment was little changed at 4.8%, according to figures released this morning by the U.S. Bureau of Labor Statistics. President Donald Trump is inheriting a relatively strong economy based on years of work that Barack Obama and his administration did to bring us out of the horrible recession brought on, in part, because of George W. Bush-era deregulation and weak enforcement. Obama inherited a failing economy, with 589,000 jobs lost in January 2009 and an unemployment rate in February 2009 of 7.6%. Trump, on the other hand, is inheriting a much stronger jobs market, with 227,000 jobs added in January 2017 and an unemployment rate of 4.8%. Trump’s challenge is to continue the pattern of job growth and rising wages. The administration needs to create policies benefiting working people so the recovery continues.
The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

In response to the January jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted:

 

Last month’s biggest job gains were in retail trade (46,000), construction (36,000), financial activities (32,000), food services and drinking places (30,000), professional and technical services (23,000), health care (18,000), transportation and warehousing (15,000), professional and business (15,000), and financial activities (13,000). Employment in other major industries, including mining and logging, manufacturing, wholesale trade, transportation and warehousing, information, and government, showed little change over the month.

Among the major worker groups, the unemployment rate for Asians (3.7%) increased in January. The jobless rates for adult men (4.4%), adult women (4.4%), teenagers (15.0%), whites (4.3%), blacks (7.7%) and Hispanics (5.9%) showed little or no change over the month.

The number of long-term unemployed (those jobless for 27 weeks or more) was little changed in January and accounted for 24.4% of the unemployed.

This blog originally appeared in aflcio.org on February 3, 2017.  Reprinted with permission.

Kenneth Quinnell: I am a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, I worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  My writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.  I am the proud father of three future progressive activists, an accomplished rapper and karaoke enthusiast.

Trump’s Treasury secretary pick claims the unemployment rate is ‘not real’

Thursday, January 19th, 2017

Steve Mnuchin, Trump’s nominee for Treasury Secretary, claimed during his confirmation hearing on Thursday that the unemployment rate is “not real” and that “the average American worker has gone nowhere.”

In response to a line of questioning by Sen. Maria Cantwell (D-WA) about what he would do to protect voters from another recession, Mnuchin claimed that he has traveled with the president and understands why Trump was elected.

“The unemployment rate is not real,” he said. “The average American worker has gone nowhere, and president-elect is committed, as am I, as his economic adviser, to work for the American people and grow the American economy so that the average American worker does better.”

On the campaign trail, Trump also repeatedly claimed that the unemployment rate is a “phony number,” and that the real rate could actually be close to 42 percent.

But Mnuchin, a former Goldman Sachs banker and the co-founder of a major lending bank, should know better. Calculated by the Bureau of Labor Statistics (BLS), the unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment. The number is a critical indicator of how the economy is doing and is widely used by economists. The number is respected by both Democrats and Republicans as a valid indicator of job growth. The BLS has calculated the rate the same way since the 1940s, and its methods do not change from one administration to the next.

The rate has also fallen by more than one-third since President Obama took office, dropping last month to just 4.6 percent?—?the lowest level since August 2007.

Despite the (real) numbers, a recent poll found that 53 percent of Republicans believe that the unemployment rate has risen under Obama. More than a third of all Americans think its worse now than when Obama took office.

Some believe that there’s a better measure to track unemployment. That statistic, called the U-6, tracks everyone who is out of work, people not looking but who want work, and those unable to find full-time employment. That number is higher?—?currently it hovers over 9 percent. But Mnuchin made no mention of this statistic being a better indicator of job growth, and it’s not clear he would give any credence to any labor statistic as Treasury Secretary.

This blog originally appeared in ThinkProgress.org on January 19, 2017. Reprinted with permission.

Kira Lerner is a Political Reporter at ThinkProgress. Contact her: klerner@thinkprogress.org

Enormous, Humongous August Trade Deficit Prompts Trade Deficit Bill

Tuesday, October 11th, 2016

dave.johnsonThe U.S. Census Bureau reported Wednesday that the August trade deficit rose 3 percent to $40.73 billion from July’s $39.5 (slightly revised). Both exports and imports rose, with imports rising more than exports. August exports were $187.9 billion up $1.5 billion from July. August imports were $228.6 billion up $2.6 billion.

The goods deficit was $60.3 billion, offset by a services surplus of $19.6 billion.

Imports from China increased 9.5 percent.

Is Increased “Trade” Good If It Really Means Increased Trade Deficits?

“Trade” is generally considered a good thing. But consider this: closing an American factory and firing its workers (not to mention the managers, supply chain, truck drivers, etc affected) and instead producing the same goods in a country with low wages and few environmental protections, then bringing the same goods back to sell in the same stores increases “trade” because now those goods cross a border. This is how “trade” results in a structural trade deficit. Goods once made here are made there, the economic gains move from here to there.

Offshoring production can be a good thing, but only in a full-employment economy. This is because with everyone employed companies can’t find people to do things that need to be done. Meanwhile workers in other countries need the jobs. The people there can afford things made here, and trade balances. Everyone benefits.

But since the 1970s the US has used “trade” and other policies to intentionally drive unemployment up and wages down, to the benefit of “investors” (Wall Street) and executives, who then pocket the wage differential. This pushes the economy’s gains to a few at the top, increasing inequality, which increases the power of plutocrats to further influence policy in their favor.

The US has run a trade deficit since the 1970s. Coincidentally, see this chart:

The stagnation of wages for working people just happens to correspond with the introduction of the intentional “trade” deficit. Again, “trade” in this case means deindustrialization: closing factories here, opening them there and bringing the same goods across a border to sell in the same stores.

Trade Deficit Reduction Act

This week Rep. Louise Slaughter (D-NY) introduced a bill designed to identify and reduce our enormous, humongous trade deficits. RochesterFirst.com has the story, in Slaughter introduces legislation to reduce trade deficits,

On Monday, Congresswoman Louise Slaughter unveiled the Trade Deficit Reduction Act, which calls for a change in how we approach international trade in order to benefit our workers.

The legislation would put a government-wide focus on addressing the most significant trade deficits that exist between the United States and other countries. The U.S. has run trade deficits since the 1970s.

… “The last thing our community needs as we work to reignite our manufacturing base with advanced technologies like optics and photonics is to undo this progress by enacting another NAFTA-style trade deal. We need a whole new direction in our trade policy, which is why I am standing with workers from PGM Corp. today to unveil the Trade Deficit Reduction Act. This legislation will change how we approach international trade and make it benefit our workers and manufacturers,” said Slaughter.

The bill would require the administration to identify the countries with which the U.S. has the worst trade deficits.

The bill also directs the administration to develop plans of action to address the trade deficits with those countries, with strict deadlines and oversight from Congress.

The intentional trade deficit and other policies to drive up unemployment and drive down wages greatly enrich a few, but history tells us the consequences are dangerous to society. For example, the rising support for Trump and other far-right populists like him around the world.

This post originally appeared on ourfuture.org on October 6, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

Trying to Teach Old Dogs New Tricks

Monday, September 26th, 2016

Last December, after a long period of keeping the Fed funds rate near zero, the FOMC voted unanimouslyto raise the Fed funds rate by one-quarter to one-half points. It was anticipated that would be the first in a series of increases of similar small amounts. But, over the course of this year, the economy has run rather flat. Employment in the areas sensitive to interest rates like construction and manufacturing, after employment gains during 2015, ran flat. Durable goods manufacturing, which had been declining during 2015, continued to fall. In 2015, the unemployment rate fell from 5.7% in January to 5.0% in October. It has since remained stuck at about that level.

Ideally, when the Federal Reserve gets things right, the economy runs neither too hot or too cold. Eight months of flat unemployment rates and tepid GDP growth would suggest the Fed has clearly succeeded in finding a landing that, so far hasn’t meant crashing the economy. At least, on Wednesday, the evidence from modest GDP growth, flat unemployment and very low inflation convinced the six Board of Governors and the president of the New York Federal Reserve Regional Bank to hold steady; a tribute to Janet Yellen’s leadership to stay focused on the data and the real economy.

But, the other three regional bank presidents, Esther George of Kansas City, Loretta Mester of Cleveland and Eric Rosengren of Boston, all voted to raise the rate now. Another point of context is understanding the global economy is growing slower. The other major world economies, Europe, Japan and China, are struggling with slow growth. Their central banks are operating with either zero or negative interest rates. America’s modest growth looks very good next to their anemic performance. So this is making the dollar very strong. And that helps to explain the weakness of U.S. manufacturing because a strong dollar hurts U.S. exports. So even modest increases in U.S. interest rates are big by global standards and could further disadvantage U.S. manufacturing.

A second context is that the excess level of savings, globally, is chasing down projections of interest rate levels. Currently, the consensus at the Fed is that in the midterm, the Fed funds rate is likely to be around 1.9% at the end of 2018, and in the long run the normal rate is expected to be about 2.9%. On the eve of the Great Recession, the Fed funds rate was 5.25%. Compared to 2.9%, a raise to between one-half and three-quarters is not small. It isn’t like when the “normal” rate was above 5%.

The current tension in the FOMC between the Board of Governors and the regional bank presidents continues the controversy whether banks have too much say. Independence of the Fed from the political process is important. But, so too is Fed independence from the banks they need to regulate and oversee to make sure we have economic stability. The vote from Wall Street was positive. The stock market gains show a consensus the Fed is doing it right.

This blog originally appeared in aflcio.org on September 23, 2016.  Reprinted with permission.

William E. Spriggs serves as Chief Economist to the AFL-CIO, and is a professor in, and former Chair of, the Department of Economics at Howard University. Follow Spriggs on Twitter: @WSpriggs.

The Federal Reserve and Black Unemployment

Tuesday, August 23rd, 2016

The Federal Reserve Open Market Committee (FOMC) that determines U.S. monetary policy met in July.  Its job is to weigh the state of the American economy, both the labor market and inflationary pressures to set policy.  In an interesting note, its discussion of the labor market explicitly noted the condition of the African American and Hispanic unemployment rates.  More than just an aside, reflecting on the status of June’s labor market the minutes of the meeting show the following note:

“The unemployment rates for African Americans and for Hispanics stayed above the rate for whites, al­though the differentials in jobless rates across the different groups were similar to those before the most recent recession.”

While it is good the FOMC notes the damage its policies may be doing to the African American community, it unfortunately appears too simplistic in understanding the dynamics of the market and how the growth in labor demand affects the African American community.  It is simplistic because it appears to say that nothing has changed; that while the African American unemployment rate of 8.6% was on par with its pre-recession level of 8.4% in March 2007, when the white unemployment rate was 3.8%, little different than June’s 4.3%.  This suggests, the relative position of African Americans is fixed, immutable by macro-economic dynamics, so this lamentable gap corresponds to the best level of African American unemployment that can be reached.  In short, we must be near full employment.

Here is what the June report showed in detail.  The unemployment rate for adult African Americans (older than 25) with Associates Degrees was 3.0%, well below the unemployment rate for white high school graduates 4.2% rate.  This was a first since the recession began, for better educated African Americans to have unemployment rates lower than less educated whites.  In July 2015, African Americans with Associate Degrees had a 4.8% unemployment rate compared to white high school graduates lower 4.4% rate.

Further unnoticed, is that at the depths of the labor market downturn, the employment-to-population ratio for African Americans (the share of people with jobs) fell to 51.0% in July 2011, but had grown by June to 56.1%, a five percentage point gain, but a 10% increase.  For whites, on the other hand, the EPOP had grown only from 59.3% to 60.2%, less than one percentage point.

So, the change in unemployment rates is deceptive.  The African American unemployment rate is improving on a strong growth in employment and in the relative improvement resulting from less discrimination in hiring.  That success has further encouraged the rise in labor force participation for African Americans; which has the perverse effect of fighting against a lower unemployment rate, because it increases the number looking unsuccessfully.

The problem for African Americans is that they face much higher probabilities of enduring long spells of unemployment.  African Americans, of the same educational attainment and with the same cognitive skill levels (the so-called test score gap often mistakenly attributed as a measure of inferior schooling) as whites, face a fifty percent greater chance of being thrown into a long spell of unemployment.  And, once having fallen into that labor market quicksand, face about a third less chance of escaping.  The result is that massive levels of unemployment, like the Great Recession spawned, result in a very long queue of unemployed African Americans.  That long line can only clear by a similarly long and sustained recovery to pluck the unemployed back among the employed.

Put it simply, the unemployment rate is a snapshot composed of the probability of becoming unemployed plus the inability to escape unemployment; so it is a much more complex picture when large numbers of people are unemployed for long periods, as they are more likely to be captured by the snapshot.  When unemployment spells are very short, people move out of the frame before the snapshot can be taken.

The unemployment gap is not one of skill, it is the very real and present discrimination prevalent in a labor market where demand for workers is low and the power and caprice of employers is high.  The relative size of the gap can change, if policies push beyond conventional measures of unemployment and underutilization of workers; it is possible to see another answer is possible.

So, it is good that the FOMC at least is aware that macro-economic policies can have a good or bad effect on African Americans.  The next step is for the FOMC to further understand how much a difference it can make.

This is not just important for African Americans.  It is important for the health of the national economy.  First, everyone benefits if we push the labor market to its true and full level of maximum employment; it means more jobs and opportunities for everyone.

Second, because the African American community has such little wealth, when the economy expands, it is a community very sensitive to the interest rate movements and credit availability to catch-up on purchases like cars and making home improvements.  These purchases are fueled by rising employment opportunities and the easing of credit when the FOMC acts to lower interest rates and stimulate economic growth.  But, in such a leveraged position, it means that a slowing economy and the loss of jobs quickly turns auto loans and home borrowing into severe household balance sheet nightmares.  Those bad effects spill over to the broader the economy.

Since African American employment is more sensitive to a slowing economy, it means the FOMC has to get it right about understanding when African Americans have reached full employment.  So far, they have consistently guessed at a number that is too high, ending labor market recoveries too soon—and economic expansions too soon for everyone.

This blog originally appeared in aflcio.org on August 22, 2016.  Reprinted with permission.

William E. Spriggs serves as Chief Economist to the AFL-CIO, and is a professor in, and former Chair of, the Department of Economics at Howard University. Follow Spriggs on Twitter: @WSpriggs.

Scott Walker Implements Backdoor Way To Drug Test People For Unemployment Benefits

Monday, May 9th, 2016

Bryce CovertUnder current law, states aren’t allowed to institute drug tests for unemployment benefits. But that hasn’t kept Wisconsin Gov. Scott Walker (R) from trying.

In July, Walker approved legislation that would implement drug tests for both unemployment benefits and food stamps, neither of which are currently permissible. To get his way, he’s suing the government to allow him to move forward with implementation, arguing that these programs are “welfare” just the same as the welfare cash assistance program, Temporary Assistance for Needy Families, that does in fact allow states to implement drug tests.

But in the meantime, he took steps this week to do as much as he can under his limited authority. On Wednesday he authorized new rules that allow employers to voluntarily submit information about drug tests they made people take as a condition of employment. If any of those employees end up seeking unemployment benefits but failed the employers’ drug tests or declined to take one, they can be denied benefits unless they agree to get taxpayer-funded drug treatment.

“This new rule brings us one step closer to moving Wisconsinites from government dependence to true independence,” Walker said. “We frequently hear from employers that they have good paying jobs, but they need their workers to be drug-free. This rule is a common-sense reform which strengthens our workforce by helping people find and keep a family supporting job.”

But past experience from states that drug test welfare recipients shows they are anything but common sense. The positive test result rates are far lower than the drug use rate for the American population as a whole — last year, some states didn’t turn up any positive tests at all. Meanwhile, they are quite costly: states collectively spent nearly $2 million administering the programs over the last two years.

Walker’s plans to spread drug tests to other programs are mostly on hold. In the meantime, beyond suing the government, he’s asking Congress to give him permission. He’s reached at least one sympathetic ear in Rep. Robert Aderholt (R-AL), who chairs the House Agriculture Appropriations Subcommittee that administers food stamps. He’s put forward a measure that would allowing testing for that program.

This blog originally appeared at Thinkprogress.org on May 6, 2016. Reprinted with permission.

Bryce Covert is the Economic Policy Editor for ThinkProgress. Her writing has appeared in the New York Times, The New York Daily News, New York Magazine, Slate, The New Republic, and others. She has appeared on ABC, CBS, MSNBC, and other outlets.

 

This week in the war on workers: Chicago teachers protest planned cuts and layoffs

Tuesday, February 9th, 2016

Chicago schools and teachers are once again under serious attack from Mayor Rahm Emanuel and Illinois Gov. Bruce Rauner, and once again, the Chicago Teachers Union is showing that it is a powerful force. Thousands of teachers and supporters rallied Thursday, with 16 people arrested, protesting massive proposed cuts and layoffs:

Officials with Chicago Public Schools said Tuesday they’re ready to cut $100 million from school budgets and force teachers to pay more pension costs after their union rejected the latest contract offer, ratcheting up the tone of contentious negotiations that have lasted over a year. […]

The latest flare-up followed an offer a CTU bargaining team rejected Monday, after both sides had deemed it “serious.” The proposal included pay raises and job security, but union officials said it didn’t address school conditions or a lack of services.

The teachers have authorized a strike, though that wouldn’t happen until spring if it happens at all.

? Weeks after the West Virginia Senate passed an anti-union bill, the state House followed suit. A PPP poll conducted for the state AFL-CIO found high support for unions and opposition to laws weakening them.

? A union has filed a National Labor Relations Board petition to represent New York Uber drivers.

? Speaking of which, New York Uber drivers are pissed, with good reason.

A crowd of 600 drivers gathered outside the Uber office in Long Island City, Queens, to protest a 15 percent reduction in fares last month, which also means 15 percent lower wages. That pay cut is on top of Uber’s 20 percent slashing of fares in 2014. All things being equal, drivers who began less than two years ago have seen their pay tumble a whopping 35 percent.

Actually, it’s not just New York.

Last September, Dallas-area drivers for UberBlack, the company’s high-end car service, received an email informing them that they would be expected to start picking up passengers on UberX, its low-cost option.

The next day, when the policy was scheduled to go into effect, dozens of drivers caravaned to Uber’s office in downtown Dallas and planted themselves outside until company officials met with them.

? Indiana repealed prevailing wage protections to let them lower wages on public construction projects … and costs have gone up since then.

Not your typical Alabama labor story:

The state’s largest employer – the University of Alabama at Birmingham and UAB Medicine – plans to raise employees’ minimum wage to $11 an hour beginning in March.

UAB employs more than 23,000 faculty and staff. The institution currently pays $8.24 an hour, about a dollar higher than the federally mandated minimum wage.

? For union members: seven steps to opening up bargaining.

?

This blog originally appeared in dailykos.com on February 6, 2016. Reprinted with permission.

Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.

NLRB Judge Rules Walmart Wrongly Fired Strikers

Monday, February 1st, 2016
Kenneth Quinnell

An administrative law judge at the National Labor Relations Board has ruled that Walmart retaliated against workers for participating in strikes. Walmart claimed that the workers’ actions were not protected under the National Labor Relations Act and that it was legitimate to fire the employees for violating the company’s attendance policy. Judge Geoffrey Carter ruled against Walmart.

The ruling says that Walmart must reinstate 16 former employees with back pay and must hold meetings in 29 stores to inform workers of their right to strike and that strikes are protected under the NLRA.

Jess Levin, communications director for Making Change at Walmart, applauded the ruling:

Today’s decision proves beyond doubt that Walmart unlawfully fired, threatened and disciplined hardworking employees simply for speaking out. Not only is this a huge victory for those workers and Walmart workers everywhere who continue to stand up for better working conditions, but it sends a message to Walmart that its workers cannot be silenced. We will continue to fight to change Walmart for the better.

Read the full ruling.

This blog originally appeared in aflcio.org on January 29, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.

Jobs Report: Conservative Economic Illusions Are Unmasked

Friday, October 2nd, 2015

Isaiah J. PooleThe surprisingly disappointing September unemployment report – 142,000 new jobs created compared to an expectation of more than 200,000 – should break once and for all two illusions about our ability to sustain a robust economy.

The first illusion is that there is no penalty for the continuing lack of public investment in the fundamentals of the real economy – from the schools that develop the skills and creativity of our future workforce to the transportation networks that enable us to move goods and people through our communities.

Years ago we should have had a place a major plan to bring all of our common assets – from schools to roads to water systems to our energy grid – into the 21st century. Not only would this have created millions of jobs, but it would have set the nation up for sustainable, more ecologically responsible, long-term growth. We should have taken advantage of the near-zero borrowing costs and the willingness of the markets – notwithstanding the sky-is-falling bleating of the chattering class – to allow the United States to take on more debt as long as it was wisely used to build for the future.

Labor Secretary Thomas Perez said in an interview on Bloomberg today that the federal spending constraints imposed by the Republican Congress – the “sequester caps” – mean the economy is producing 500,000 fewer jobs a year than it would if those constraints were lifted. Those jobs would range from construction workers to teachers to health care workers.

The second illusion is that we can continue down the road of corporate-driven so-called “free trade” – which has given us month after month of “enormous, humongous” trade deficits – and have a strong Main Street economy. Earlier this year, the White House Council of Economic Advisors issued a report that noted that during the second quarter of the year, “net exports subtracted nearly 2 full percentage points from quarterly GDP growth.” Of course it would: every month of trade deficits running between $40 billion and $50 billion represents that much less economic activity that would benefit American workers and the American economy. Plus, our strong dollar makes our exports more expensive and thus less attractive to potential foreign customers. It is no wonder, then, that this month’s jobs report reflects continued weakness in our manufacturing sector, which would be a source of good=paying jobs if it were stronger.

Federal Reserve chair Janet Yellen has warned repeatedly that there was a limit to what the Fed’s zero-interest-rate policy could accomplish without a pro-growth and pro-people fiscal policy to complement it. That was clear even with the sunnier initial summer jobs reports. Now that those reports have been revised to show that we’ve been averaging only an additional 167,000 jobs a month in this past three months – just enough to tread water – the truth of what Yellen has been saying is in even sharper relief.

How the Obama administration and Congress should respond is clear: End the senseless budget sequester caps, get a long-term transportation bill passed this month and don’t approve a Trans-Pacific Partnership trade bill that continues the pattern of chronic trade deficits and outsourced jobs. The political machinery in Washington seems almost hopelessly constipated, but we should still seize the professed shock of this month’s employment news to change the political conversation in a way that could lead to long-term change.

This blog was originally posted on Our Future on October 2, 2015. Reprinted with permission.

About the Author: Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

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