Business Blues

The lead article in today’s New York Times, “Sharp Slowdown in Hiring Clouds Economic Outlook,” describes a continuing anemic recovery as the nation only added 54,000 jobs last month compared to more than 200,000 in the previous three. State and local governments as well as the manufacturing sector, that has been leading the recovery, all reported net losses.

In addition, two leading indicators, the amount of temporary help and the length of the workweek, showed no increase. These statistics are important because employers typically increase them prior to hiring new full-time employees.

Probably the worst statistic for the President’s reelection chances, the unemployment rate, also ticked up to 9.1 percent from 9 percent. This is the most widely reported barometer of economic health, but it is unreliable because it is dependent on the amount of people seeking work, and when the economy starts to improve, more people do so.

Republicans, of course, were quick to score points from the report and characterized the stimulus package as a failure when many economists think it wasn’t big enough. Meanwhile, liberal Democrats called for more spending and additional actions by the Federal Reserve.

It’s hard to deal constructively with these policy issues when all sides just use them as an excuse to push their pet programs.