April hiring slows sharply, employers add 115K jobs
Penn Financial Group president Matt McCall reacts to new numbers
- Duration 6:45
- Date May 4, 2012
Penn Financial Group president Matt McCall reacts to new numbers
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-- a dismal jobs report showing more Americans have stopped looking for work altogether.
The Labor Department showing employers added only 1151000.
Jobs last month.
Compare that to April of 1984.
After the most severe recession since world war tail under President Reagan.
The US economy added 363000.
Jobs that month.
So often you hear the president's recovery compared to president Reagan's recovery.
But you can see the disparity.
In where we were -- 363.
Added in April before vs 115.
Thousand added this month joining me now Matt McCall president of -- financial group Matt.
I mean it says a lot -- bring -- says that 363000.
Back in April of 1984 would be more like 450000.
Jobs being created.
Today and we -- the point is we are -- off pace of the recovery we were going through.
Back then this recovery looks nothing like that what.
Now looks nothing like it they're forcefully -- -- is getting actually weaker the last couple of months which is even more troubling.
And it filled the lot after the argue against that that point eight and it's a -- That's just one month us not just look a one month well I look back that's the -- the first eleven quarters of the Reagan recovery back in the eighties.
And we had treated nine point four million jobs.
The first eleven quarters of the Obama recovery three point nine million jobs so that's a dramatic difference you can't say well it's because -- because of the warm weather it's just this one month overall this recovery is not -- -- -- -- recover we saw under Reagan.
Let's look at the numbers so far in terms of the new jobs added just over the past year and give the viewers a sense for.
Where we stand things had been going rather well in look at this look at the peak there in late December January.
Of 12 February 12 275000.
Jobs added that's more like it.
Then April were down at 115.
That why march was that April was bad February we're starting to slide why.
Well it's not the fact that people are -- companies are laying off him announcing his big layoffs the problem is companies -- not harder.
Yeah -- look at small companies make it large corporations.
They are not.
Hired I decide -- to some of the small business and it's the same thing I hear over and over.
I don't know what's around the corner I don't know what's gonna happen taxes I don't know what's in -- cost -- have health insurance whose employees so you know what I'm going to do.
I'm gonna sit in my hands right now they can continue to keep up with demands from my goods with the employment that I have there's no reason why weren't they doing that engineering and February and late December we saw -- it -- we saw the economy picked up a bit we -- we saw the stimulus take effect we saw a bit of growth.
And keep in mind there's a lot of layoffs so a lot -- -- just had to get back from the beer bones that they had to get a couple people in there to keep up with the increase in demanding goods and services.
However demands for -- service is we've had the GDP last quarter growth and a 2.2 percent.
Again going in the wrong direction so you do not have demand for goods and services as an owner of the company's small -- large.
Why would you hire somebody else.
Look at the unemployment area under President Obama from the time he took office to today look at the graph -- this now -- just based on that you would say.
The president's getting the job done he took office -- is around seven point 8% unemployment look at him today look how high it went 10%.
Now it's down to eight point 1%.
Today I have heard analysts on both sides of the aisle say the eight point 1% may look good on Paper but that is still a very problematic.
It's extremely problematic because it still is high for a president that's about to go through now let's get politically but we're okay it doesn't it -- saying it doesn't mean only eight point one present are certainly nothing to me that's like me saying you know I've lost ten pounds in the gym over the last week however my class also the -- my heart's about to explode the meeting terribly -- haven't.
-- about losing weight to -- underlying number here's what's called the participation.
They take the people better of what it called what's called working age and percent of those people that are actually working.
It dropped this month down to 63 point 6%.
The worst level since December of 1981.
So you're saying out there everybody who wants a job only 63 point 6% have a job to -- -- eight point when he -- five point -- I don't care what the administration says.
And the numbers that I just talked about come from the government.
People are out of work then you have the other inimical to use sex.
Of people that are unemployed as people that are under employed at temporary work.
So if you look at the real number is not just a big number it is extremely troubling the -- -- picture here in this country.
Is bad and getting worse so we can figure out and unemployment you look at that that number of Americans who.
Want jobs vs the number of Americans who have jobs is that if you change the number of Americans who want jobs by.
Throwing you know thousands out of that calculation because they've given up they've decided to take early retirement whenever you necessarily gonna get a lower unemployment rate.
In the last twelve months that -- close to two point seven million people say I'm done looking for a job how.
Good thing I mean I yeah you hear about that -- didn't walk top of people with sustaining themselves.
Off the government had to say that but then and then again you -- have the unemployment benefits for so long and then that runs out so they knew of welfare -- -- its.
It's a very troubling statistic because when -- two point seven million Americans saying.
I've given up on finding a job what are they doing Internet.
And when you have people -- can get unemployment for close to two years now.
And up a large portion it's it's 27 weeks and all that -- the number of long term unemployed who have been unemployed for 27 weeks or more.
Was it five point one million an April that's that's little changed a year to year apparently five point one million people have been without without a job.
For 27 weeks or more.
It would be easy to give up I mean -- it's so disheartening I.
I completely agree that number actually should be higher because again they're not Italian people had given up on work and there's that number is actually -- high if you continue.
Do you give include people that have just given up -- -- -- to -- out -- listening saying in a lead it's easy to go out there find a job.
But I'm -- and administration standpoint they're trying to put a positive spin on this number this morning everything that I've seen always found that eight point 1% we still are creating jobs.
What about the millions of people out there what do you tell them.
When they gave up on getting work because they didn't government's really doing nothing to help you.
Think she should point out the nine million jobs created under Reagan during his recovery about his -- because we have heard the Obama administration talk about the three million jobs that they have created.
And you know that may be the case your point is it needs to be much much more for us to really rebound from what we suffered we can we come in -- worst -- that that we've ever seen.
Also keep in mind it is and this monthly number needs to be closer between two -- 300000.
To even get close recovery where 115 -- we're going to have to -- we need to good.
-- a call thank you -- -- new developments on.