The status of our economy

As Nebraska's economy continues to grow and unemployment remains low, the national economy is another story. The Bureau of Labor Statistics reported an increase of 288,000 non-farm jobs in June, reducing the unemployment rate to 6.1 percent. These numbers sound like positive news; however, they do not tell the whole story. About six years after the economic crisis began, our economy still has not fully recovered.

There are now about the same number of Americans working today as before the recession began. Because of population growth we actually have not caught up with pre-recession employment levels. To close the real jobs gap, including jobs lost and to account for population growth, we would need to see average job growth of 374,000 jobs per month for the remainder of President Obama's term. At the current 12-month average of 203,000 jobs per month, we would not close the real jobs gap until 2018.

The official unemployment rate also does not account for those who have dropped out of the labor force -- those who have given up looking for a job altogether. The Labor Force Participation Rate, which measures the number of employed Americans and those looking for work relative to the total population, is at the worst levels since the Carter Administration.

If you include those who have given up looking for a job, or those who never entered the labor force because of lack of opportunity during the recession, the real unemployment rate would be above 10 percent. In fact, during the Obama Administration more working age adults have left the labor force than found new jobs by a ratio of more than 3:1.

This record looks especially bleak when compared with the recovery during the first term of the Reagan Administration. Despite a deep recession beginning during the Carter Administration in the late 1970's, the economy strongly rebounded. From 1983-1990 the economy grew almost 36 percent and 20 million new American jobs were created.

President Obama promised his policies of massive borrowing and spending would "stimulate" the economy into recovery. So far these promises have fallen flat and the current rate of growth is simply unacceptable. Too many Americans are hurting because they have been limited by an underperforming economy.

House Republicans have passed more than 40 bills to encourage economic growth by reducing the size, scope, and burdens of the federal government. However, the Democratic leadership of the U.S. Senate refuses to act. Perhaps they believe the economy is booming and see no reason to change their policies. However, the truth behind the economic data shows this is not the case. The American people, especially those in need would be better served by solutions to our economic challenges.