Uneven Economic Growth

The lead article in today’s New York Times, “Modest Growth in Jobs Tempers Recession Fears,” provides the latest economic statistics from September’s monthly report. Jobs increased by about 100,000, just enough to cover new people entering the work force and keep the overall unemployment rate the same at 9.1 percent.

The results can be viewed as a glass half empty or half full. Auto sales increased by about 10 percent, but the manufacturing sector, responsible for much of our recent growth, lost jobs this month. In addition, about a third of the overall private job growth could be attributed to the return of 45,000 Verizon employees who had been out on strike.

Healthcare, professional and business services all grew last month, but the public sector continued to bleed jobs, with teachers being especially hard hit. Perhaps most important, there was no sign of alleviation for the 14 million unemployed Americans. The average length of unemployment, at 40-plus weeks, also continues to be unacceptable.

The President is caught between a rock and a hard place. If the statistics were worse, he could use them to push for his jobs bill. If the statistics were better, he could them to counter accusations from Republican presidential candidates about his poor stewardship of the economy. In between doesn’t help matters much.