Job Market Steadying Under Obama But Remains Weak
WASHINGTON (AP) â¿¿ The September jobs report that arrives Friday, a month before the presidential election, will likely sketch a dual picture: The job market continues to heal. Yet it's far from full health.
No incumbent since Franklin Roosevelt has faced re-election with unemployment so high. The rate was 8.1 percent in August, up from 7.8 percent when President Barack Obama took office in January 2009. Economists predict that the rate reached 8.2 percent in September, according to a survey by FactSet.
It would be the 44th straight month in which unemployment has topped 8 percent.Still, the job market has been improving, sluggishly but steadily. Jobs have been added for 23 straight months. There are now 125,000 more than when Obama took office. Economists predict 111,000 more were added in September. The administration's defenders argue that Obama shouldn't be held accountable for job losses early in his term. When he became president in the midst of the Great Recession, the job market was collapsing. In January 2009, the economy lost 818,000 jobs, the grimmest showing since 1949. In the first four months of his presidency, 3 million jobs vanished. Obama's economic prescriptions, particularly an $862 billion stimulus plan, didn't kick in until months after his inauguration. Since bottoming in February 2010, the economy has added about 4.4 million jobs. And private companies have added more than 5 million â¿¿ a figure the White House likes to emphasize. But job gains in the private sector have been partly blunted by layoffs by state and local governments. And as voters prepare to decide whether to back Obama or his Republican challenger, Mitt Romney, many of the job market's vital signs are faint: â¿¿ More than 5 million people have been out of work for six months or more, up from 2.7 million when Obama took office. Before 2009, in records dating to 1948, the number of long-term unemployed had never reached 3 million. Federal Reserve Chairman Ben Bernanke has called long-term unemployment a "national crisis" that is causing millions to lose job skills.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV