Job Creation Under Obama Has Actually Been Solid

While the unemployment rate has stayed stubbornly high, private sector job creation under Obama has actually been solid. To compare, lets take a look at private sector growth under George Bush vs private sector growth under Barack Obama. Since both started their presidencies on unfair recessionary conditions (Bush inherited the Dot-Com bubble bust while Obama inherited the Financial Crisis), we will only take a look at the data from the first 2 consecutive months private sector job creation went positive. I do not think this is being selective at all with the data because nobody expects a president to turn the economy around in less than 6 months.

Under George Bush, the average private sector job creation per month was 151,000. Under Obama, it has so far been 143,000 per month. The best month under Bush was 366K, while under Obama it has been 261K. Given the hand Obama was dealt, the private sector job market has been impressive, especially when compared to Bush’s bubble-fueled job creation.

(Note: I am not saying its been strong, I know it can be stronger, but it is not as weak as people might want you to think)

Total Private Sector Job Growth

(Change, Thousands of Persons)

 

So the Private sector is doing good. Then what is hurting Obama and keeping the unemployment rate high? Well, frankly, its the public sector shedding jobs. Bush never really dealt with such a drop in jobs in the public sector. Besides the one abnormality in 2010, public sector job growth has been mostly measly or negative. Compare that to Bush who has mostly positive public sector job growth in his first term.

Public Sector

 

Private vs Public

(slightly outdated, but you can see the trend here)

 

Tags: $MACRO, $FED

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Jerry Khachoyan Blog