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Private-sector job growth doesn't look great, either

Last month, David Leonhardt was fairly positive on the jobs report even as many others were negative. This month, he isn't. "The economic recovery has lost significant steam in the last few months," he writes, and as evidence, points to the same indicator that the administration used as a basis for optimism: private-sector job growth. As the administration pointed out, compared with last month, it's up. But as Leonhardt pointed out, compared with the recent trend, it's down:

economix-02privatesector-custom1.jpg

And there's some chance that those numbers actually overstated. Peter Newland of Barclays Capital looked at the numbers and said they suggested that "there had been some substitution away from the private sector and into temporary census jobs in recent months. For example, leisure and hospitality (an area that may naturally compete for the same short-term hires) jumped by 37,000 in June, having fallen by 7,000 in May." In other words, private-sector employment might've been boosted by the end of the census jobs.

"If the Senate and the Federal Reserve were waiting for more information to decide whether the economy needed more help," concluded Leonhardt, "they just got it."

By Ezra Klein  |  July 2, 2010; 2:49 PM ET
Categories:  Economy  
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Comments

I don't know if it's funny or depressing that Leonhardt thinks the Senate will respond to data.

Posted by: mschol17 | July 2, 2010 2:56 PM | Report abuse

hah, +1 for mschol17 - I'll try to find it funny for now.

Posted by: AttentionDeficit | July 2, 2010 3:01 PM | Report abuse

"In other words, private-sector employment might've been boosted by the end of the census jobs." We can also say that previous private-sector employment might have been weakened by the census jobs in the past too, so I am not sure of which way to see this argument

Posted by: PtitSeb | July 2, 2010 7:01 PM | Report abuse

this is not getting better with this adminstrations policies towards business.

The worst figure not mentioned is the average work week that went from 34.1 to 34 hours per week. Not to mention the state level employees to be laid off over the next several months.

Posted by: visionbrkr | July 2, 2010 8:45 PM | Report abuse

this is not getting better with this adminstrations policies towards business.

The worst figure not mentioned is the average work week that went from 34.1 to 34 hours per week. Not to mention the state level employees to be laid off over the next several months.

Posted by: visionbrkr | July 2, 2010 8:45 PM | Report abuse

"If the Senate and the Federal Reserve were waiting for more information to decide whether the economy needed more help," concluded Leonhardt, "they just got it."

It is clear that Senate is not going to do anything while we go into the double dip. Obama has also given up to do anything here. The way things are going, the die is cast.

This is because even if Dems talk about any stimulus spending, by the time it comes on the line; it will be full blown recession again. Obama and Dems failed to realize what will 'sale' deficit funded stimulus. They cannot bring themselves to control certain entitlement spending as well as restrain public sector union labor and as a result cannot go with any credibility to American people that deficit funded stimulus is needed. GOP is obviously gaming for more hardship to Americans so that they get votes in Nov 2010.

All the wonkery of Ezra and Progressives is of no use. Things are have gone beyond repair here...

Posted by: umesh409 | July 2, 2010 9:13 PM | Report abuse

We have given them all sorts of tax cuts and still the private sector can't produce. With a few exceptions, they are not about any country or about the people of the world but about money in the hands of a few. We should not depend on them so much.

Posted by: joetarcy | July 3, 2010 9:38 AM | Report abuse

Check out the write-up on this CETA-like program (http://www.nytimes.com/2010/07/03/opinion/03herbert.html) to help folks who are eligible for welfare to find jobs. It is helping a couple hundred thousand people in the public and private sectors. Imagine what resurrecting CETA would accomplish for millions of long term unemployed. It made sense 35 years ago, it made sense last year, and it makes sense this year...if the politicians really want to fix the unemployment problem.

Happy 234th, America!

Posted by: tuber | July 3, 2010 3:05 PM | Report abuse

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