The Department of Labour announced that 227,000 jobs were added in the month of February. It was the third straight month where a significant amount of jobs were created and many experts have said consumer confidence in the economy is rising as a result. However, unemployment has remained relatively constant throughout the past few months at 8.3% because many people who had stopped looking for a job have again resumed. There has also been a rise in people quitting their jobs, and people don’t quit their jobs unless they have another job opportunity. Jobs gains have also happened in a variety of areas including manufacturing. President Obama stated that this is the first time since the 1990’s that companies were bring manufacturing jobs back to the U.S. The President is also likely hoping that these job gains continue and consumer confidence continues to rise as the economy will likely be an issue of much debate come the election. Republicans instantly responded by saying these jobs gains were too little and too late. Will this job surge continue? Are these jobs too little and too late for Obama?
4 comments:
I do not believe that this is a case of too little, too late. If you look at the unemployment statistics when Reagan sought reelection, the percentage unemployed only dropped significantly in the few months leading up to the election, yet the decreasing unemployment was cited as a significant factor of Reagan's reelection. As long as people see that the current President is successful at decreasing unemployment, they are usually happy because none of the other candidates can prove that they definitely would have / will do a better job with the economy.
I agree with Kore, and would like to add that even a slight upward trend will look favorable in voters' eyes, even though a president has little to do with the economy, because of the incumbency effect. In actuality, both sides are simply playing for political effect. Obama is showing off his hat as chief legislator and his somewhat successful plans to jump-start the economy and bring back jobs. Meanwhile, his Republican challengers are trying to dim the stage in the hopes of hiding his stylish cap.
The influx of new jobs is certainly a confidence booster in my opinion. Although the Republicans were quick to say the new jobs were "too little and too late", I believe that Obama has done an admirable job considering the divided congress we have at the moment. Also, while the percentage of unemployed has only now returned to its original levels when Obama began his presidency, it is to be noted that Obama inherited a failing economy from the Bush administration. The fact that he has been able to deal with the economy despite obvious resistance from the republican side of congress is impressive.
If Obama is re-elected, I would expect the number of new jobs to increase.
There definitely seems to be an upward trend in the economy as far as consumer confidence and job availability goes, or at the very least the public's perception of such factors is more favorable than it has been in a long time. As for the unchanged unemployment rate, unemployment is a lagging economic indicator of an improving economy. Things definitely seem to be getting better, and whether or not Obama was the one to effect that change is not really going to matter to the public. People are going to associate the current upswing with the current administration. As recent polls have demonstrated, Obama's approval ratings are up.
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