U.S. World Leader in Creating Lousy, Low Paying Jobs

By Joe Guzzardi
January, 13 2014

Although the December Bureau of Labor Statistics’ report showed that unemployment declined to 6.7 percent, a 5-year low, the economy created only 74,000 jobs, the fewest in 3 years. December’s jobs total fell so far short of the anticipated 200,000 and the 2012-2013 average of 182,500 that even established administration supporters can’t explain away what reality-based cynics have long known. No meaningful recovery is afoot and there’s none pending. 

The raw data is just the tip of the bad news iceberg. The unemployment rate drop from 7 percent to 6.7 percent, the one palpable bright spot, is misleading because individuals leaving the work force rather than people finding jobs caused the decline.  In December, the aggregate work force shrank by 347,000 which left the proportion of Americans actively in the labor market at 62 8 percent, the lowest in 35 years. The BLS U-6 unemployment rate that factors in marginally attached workers including those no longer seeking employment and part-time workers is 13.1 percent. During the 12 month period ended December 2013, the work force shrank by 496,000.

Everyone’s hurting. In her MSNBC interview, economist Teresa Ghilarducci said that the U.S. is the world’s No. 1 at creating low wage jobs. Ghilarducci explained that 1 out of 4 U.S. workers make $18,000 a year or less. No other industrialized nation has such a dismal record.

Among workers aged 45 to 54, the participation rate dropped 0.4 percent to 79.2 percent, the lowest since 1988. For workers 55 and older, the rate edged down 0.1 percent point.  So called prime age (25-54) workers’ rate fell from 81.3 to 80.7 percent over the past year and is significantly less than its pre-recession 83.1 percent level.  Julia Coronado, BNP Paribas’ chief U.S. economist said: “It just keeps dropping and dropping. It’s depressing, as it’s not just older workers retiring.”

Coronado may be depressed but Congress isn’t. Although employment remains consistently weak, Congress reconvened earlier this month with renewed determination to pass comprehensive immigration reform legislation that would expand the labor market at a time when tighter markets are needed. House Majority Leader John Boehner announced that he and his colleagues are drafting an immigration principles list that they’ll soon debate soon. Willfully blind Judiciary Chairman Bob Goodlatte told the Spanish-language station Telemundo that he “sees no reason” reform can’t pass this year.

Maybe Boenher and Goodlatte don’t understand supply and demand economics. Or maybe they can’t do simple addition. Despite the relentlessly grim monthly jobs reports, and countless speeches promising to create more American jobs, reduce income inequality, and cut poverty, Congress persists on amnesty even though it would undermine their stated goals. The Senate and House bills under consideration would immediately grant legal work permits to 12-20 million illegal immigrants and, over a decade, add 30 million work-authorized legal immigrants to the labor pool. In other words, if immigration passed tomorrow, before the year’s end millions more workers would be vying for jobs with 20 million unemployed Americans.

The measly 74, 000 jobs is a smaller total than the average number of legal immigrants admitted monthly, and  a good indicator how over-immigration depresses employment. If Congress is serious about putting the unemployed back to work, it would store immigration reform in the deep freezer. Unfortunately, special interests trump Americans’ best interests and, consequently, the Capitol Hill immigration reform beat goes on.

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     Joe Guzzardi is a Californians for Population Stabilization Senior Writing Fellow whose columns have been syndicated since 1987. Contact him at [email protected]