Jobs Report Doesn't Tell Full Story
WASHINGTON, D.C., October 5, 2012 – Unemployment fell below 8 percent for the first time in four years last month, according to the September jobs report from the Department of Labor. The economy gained 114,000 jobs in September, which helped lower the unemployment rate from 8.1 percent to 7.8 percent.
But, as CEI Vice President for Strategy Iain Murray pointed out, job numbers are almost always inflated this time of year because of holiday season hiring. And, as Senior Counsel Hans Bader noted, many people have given up on full-time employment and taken part-time jobs.
According to the jobs report, the number of involuntary part-time workers rose from 8 million in August to 8.6 million in September. This increase in part-time employment helped bring down the unemployment rate, but it means hundreds of thousands more Americans are struggling to get by on part-time pay.
But, according to Murray, to achieve real jobs growth, the federal government needs to cut down businesses’ regulatory costs.
“Employers still face a dizzying array of regulations to comply with before they can hire someone new,” Murray said. “Estimates put the cost of red tape per employee at over $10,000 for small businesses. That's a massive deterrent to hiring new workers.”