Today's employment report: The one thing we haven't done is create jobs 

Unemployment is down by 0.4 percent, according to today's release from the Bureau of Labor Statitstics. But it's not because we've been creating jobs -- only 36,000 jobs were created between December and January.

The reason unemployment is down is that between December 2010 and January 2011, 504,000 Americans dropped out of the workforce and stopped looking for jobs. Because the labor force is the denominator in the equation that determines the unemployment rate, this pushes the rate down. But it doesn't mean the situation is any better.

The continued decline in workforce participation is not necessarily an unmitigated evil. Most people would agree that families should not be forced to have two incomes to survive, and senior citizens should be able to enjoy their retirement without having to take on a job. But BLS does not report any accompanying major wage gains, which would be needed to make this work out well for all involved. So what today's report says is that we are heading toward an economy in which a smaller percentage of Americans work.

So, two years after its passage, is the stimulus creating jobs? It appears that even we reduce the unemployment rate, the one thing we are not doing is creating net jobs.

About The Author

David Freddoso

Bio:
David Freddoso came to the Washington Examiner in June 2009, after serving for nearly two years as a Capitol Hill-based staff reporter for National Review Online. Before writing his New York Times bestselling book, The Case Against Barack Obama, he spent three years assisting Robert Novak, the legendary Washington... more
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