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Labor Department

Jane Richey / September 20, 2012

Numbers Don’t Lie

Twenty years ago, when Democrats tried to oust an incumbent Republican president from office, they questioned his economic stewardship. Vice presidential candidate Al Gore famously bellowed: “Everything that ought to be down is up, and everything that should be up is down!”

The argument seems more relevant today than it was in late 1992.

Republicans are trying to fire an incumbent Democrat president amid the worst economic recovery since the Depression. And the economic news is not getting better for Barack Obama as the race heads into the final lap.

This was not the case on the eve of the 1992 election, when economic reports revealed both GDP and payrolls were in fact growing at a robust clip following a comparably mild recession.

Still, Gore indicted the record of President George H.W. Bush with stat after stat – stale as they were – showing lackluster economic performance.

He zeroed in jobs and incomes to show indicators that were wrongly down, and unemployment and the federal deficit to highlight what was errantly up.

Applying Gore’s test to Obama’s economic record produces far worse results.
Click here for a breakdown.

Jane Richey / August 18, 2012

Unemployment Rises in 44 States

Unemployment increased in 44 states last month, proving that the rise in joblessness is being felt by everyone, according to a new report from Bloomberg.

Alabama and Alaska were hit the hardest, both registering a 0.5 percent increase in jobless claims, according to data released on Friday by the Labor Department. Meanwhile, California and Michigan led the 31 states that experienced payroll increases.

“Across the nation, the unemployment rate rose to 8.3 percent in July, a five-month high, even as employment increased by the most since February,” Bloomberg reports.

“Faster hiring is needed to spur consumer spending, which accounts for about 70 percent of the economy, and to help reduce elevated joblessness that remains a concern for Federal Reserve policy makers,” the report adds.

But — but — what about growing payrolls?

The gains are “probably not enough to make really significant sort of progress on improving unemployment rates,” Jeremy Lawson, senior U.S. economist at BNP Paribas in New York, told Bloomberg. “Firms are waiting on more clarity as to what general direction things are headed.”

Read more.

Jane Richey / August 16, 2012

$100 M to States to Subsidize Payrolls

The Labor Department announced on Monday that it will be awarding almost $100 million in grant funding to states to prevent layoffs by allowing businesses to pay employees as part-time workers and the federal government will pick up the tab for the cost of a full-time paycheck.

The “work-sharing” program was passed as part of a Republican-led bill in the House, H.R. 3630, and Senate Amendment 1465 to extend the payroll tax deduction and unemployment benefits. In February 2012, President Barack Obama signed the bill into law, which included the $100 million in funding.

“Establishing or expanding work-sharing programs nationwide will help business owners better weather hard economic times by temporarily reducing their labor costs while still keeping their existing skilled employees,” Labor Secretary Hilda L. Solis said in the press release announcing the grants. “This program is a win-win for businesses and employees alike.”

The work-sharing programs “allows employees to keep their jobs and helps employers to avoid laying off their trained workforces during economic downturns by reducing the hours of work for an entire group of affected workers,” according to the Labor Department.

Read more.

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