Help Wanted? What the latest jobs numbers really mean
Nov 2, 2012, 7:42 AM | Updated: 10:12 am
The latest job numbers released Friday show more people got jobs but an increased unemployment rate. (AP Photo/file)
(AP Photo/file)
Both President Barack Obama and Republican rival Mitt Romney say the latest jobs report released Friday morning proves their point about the state of the economy heading into election day, with the numbers showing both more jobs and an uptick in unemployment.
The Labor Department reported that U.S. employers added 171,000 jobs in October and that hiring was stronger over the previous two months than first thought. The unemployment rate inched up to 7.9 percent from 7.8 percent in September because the workforce grew.
But in an interview with Seattle’s Morning News, CBS Moneywatch editor Jill Schlessinger says even though the numbers aren’t great, they are a relief to the Obama administration.
“If you heard a big sound, some sort of exhale, that was the Obama administration saying, ‘Oh my God, thank God it wasn’t 8 percent and the number was stronger than they thought it was going to be.”
Schlessinger says while 12 million people remain out of work, the report shows the economy continues improving.
“I think this is what you really wanted to see, a resumption in job creation.”
But Romney is using the latest report as ammo in the final sprint to the campaign finish.
“Today’s increase in the unemployment rate is a sad reminder that the economy is at a virtual standstill,” Romney said in a statement. “When I’m president, I’m going to make real changes that lead to a real recovery, so that the next four years are better than the last.”
Romney continues criticizing Obama for the unemployment rate, arguing the president promised in the past it would be closer to 5 percent rather than 8 percent. But Schlessinger says comparing to numbers from before the great recession is unrealistic because the economy was “juiced up on free money.”
“Do we really want to get back to an economy that relies on easy lending and tons of leverage and a financial sector going crazy?”
Schlessinger also points out despite more people finding work, the outlook is far from rosy for those getting back into the workforce.
“If you are lucky enough to get a job, you are most likely making less than you were previously because the economy has created jobs. But a lot of those jobs are low wage jobs,” she says.
