NEW YORK ( TheStreet) -- The economy added 103,000 jobs in December but that was disappointing after recent surges in retail sales and business spending. Simply too many dollars Americans spend go to imports but don't return to buy U.S. exports, leaving too many Americans jobless, wages stagnant, and federal and state governments with budget woes.

Analysts expect the Commerce Department Thursday to report the deficit on international trade in goods and services was $40.7 billion in November, up from $27 billion when the recovery began. This rising deficit subtracts from demand for U.S. products, just as stimulus spending and tax cuts add to it. The deficit is taxing growth and jobs creation, and the Obama administration hasn't offered a credible policy to reduce it.

Jobs Creation

By the end of 2013, about 13 million private-sector jobs must be added to bring unemployment down to 6%. Current policies are not creating conditions for 5% gross domestic product growth that could be achieved and is necessary for businesses to hire 350,000 workers each month.

Since December 2009, the private sector has added 112,000 jobs per month, but most of those have been in government subsidized health care and social services, and temporary business services. Netting those out, core private-sector jobs creation has been a meager 58,000 per month -- that comes to 18 new jobs per county for more than 5,000 job seekers per county.

During the early stages of an economic expansion, temporary jobs appear first but 18 months into the recovery, permanent, non-government subsidized jobs creation should be accelerating. Instead, core private-sector jobs were up only 60,000 in December.

Trade Deficit

Imports grew so much more rapidly than exports that the trade gap subtracted 1.7% from demand for U.S. goods and services and third-quarter GDP.

But for the growing trade gap, GDP would have increased 4.3% instead of 2.6%. At that pace, unemployment would fall to about 7% by the end of 2013.

Oil and goods from China account for nearly the entire trade deficit, and without a dramatic change in energy and trade policies the U.S. economy faces unacceptably high unemployment indefinitely.

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