I love the way the media frames “headlines”. In “Job growth continues to improve”, the WSJ writes:
WASHINGTON—U.S. job creation remained solid in February and was stronger in previous months than initially thought, marking one of the economy’s best stretches of the nearly three-year-old recovery.
Overall, the economy has added an average 245,000 jobs over the past three months—more than double the pace of job creation between May and November.
If I didn´t know better I would be ecstatic! Since I do know better, let me put this piece of news in perspective.
It´s easy, but uninformative, to “play with partial numbers”. The WSJ says the “economy added an average of 245,000 jobs over the past three months”. OK, nice, but that hasn´t been enough to compensate for the loss of an average of 256,000 jobs during the first three months of the recovery.
In the 32 months since the start of the recovery in mid-2009, the economy has added a paltry 68,000 jobs on average per month. Far, far from enough to compensate for the average monthly loss of 415,000 jobs lost during the 18 months of the downturn. Yes, we´re still short 5.3 MILLION jobs!
The fact is that despite the apparent “goodness” of the latest partial numbers the “script” hasn´t changed at all. The following charts tell the story.
And that´s the real story. The Fed dug a “deep hole” and shoved employment inside”. Four years later it still refuses to “shine the light”.