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Latest Jobs Numbers Masking State of Employment?

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    Former Deputy Labor Secretary Steven Law on the state of the current job market.

  • Duration 3:45
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Market right now joining the company is Stephen law.

He's fall -- deputy secretary of my -- on the George W.

Bush he is that now the present all the Republican fundraising group American crossroads Steve welcome the program thank you.

A way to characterize the job situation because.

Will we hear that it's improving.

Than we had a smaller number of new unemployment claims today he and the unemployment rate is down to eight point 3% -- you characterize the labor market for us.

I think we've got -- downgraded view of what constitutes employment right now and there are two reasons for that study came out recently that showed that fully half for more people who took jobs recently -- to get out of unemployment.

Took jobs -- paid less less benefits less of what they wanted.

You've also got huge number of people who exit of the labor force completely they just simply given up and so.

The figures look better because people leaving the labor force -- a lot of people are having to take jobs that aren't what they had hoped for so.

If people have not left the labor force abandoned hope of getting a job -- -- not dropped -- The unemployment rate would not have come down to eight point 3% no would have been higher because the unemployment rate is measured against the people in the labor force.

So you have people leaving the labor force because they've just quit they've given up and they've given up hope.

That causes the labor unemployment rate to drop.

How how big -- pool of people.

Is that that's no longer in the labor force and who are these people.

And how did well it's it's millions upon millions of people who have left and a lot of them they come from all walks of life but -- people who have been unemployed for very long period of time and one of the things -- a big concern about the unemployment rate now as we've had.

8% or above unemployment for 37 months that's a record.

You have people who have been unemployed for forty weeks or longer and what what that does is it cause people to get very discouraged and they to stop looking just.

He jobless claims go down and again at eight Lotta people blaming the weather for this are we pulling Johns -- -- and as a result of the week of spring coming forward.

What's hard to know what did trends will be in in terms of the season so the bureau -- -- structure correct for that I think it's a longer term trend that worries that folks like us who look at these.

Numbers and look below the numbers for longer period of time you -- see real weakness underneath this.

And you see people coming in just because they've got to get a job you see people working part time just because they're desperate or two jobs because of not making enough.

That's just an overall poor labor market not withstanding these slight.

Variations in -- change in the last report did we actually see that that the labor pool increase that is says some people were getting who had a dynamic in -- back here bright and you'll see some of that -- you see some people come back into the labor force unemployment may spike back up as a result.

But it again and it just looking -- operationally.

Are people doing better are they making more do they feel better about the unemployment situation it's not really getting -- much -- out there for real people not withstanding these little variations and in what we see coming out of the all right Stephen lol you all the president of American crossroads known as the super -- business that is indeed you raise money.

We did the Republicans yes having a tough job will want.

No it's actually been going very well I mean people to attend to get involved in groups like ours for two reasons first of all they're concerned about the direction of the country that a lot of people are concerned about the direction of the country.

And it and they also feel that this -- potential for change.

And I think people are waking up to the fact that there could be changes November and so they're given that we hear a lot about -- we we -- Wall Street on this program obviously.

We hear a lot about how Wall Street has left the president of -- fund raising phone giving options is that true.

He's had a significant drop off he's not raise as much as he has had in the past.

And in addition that he's spending a lot more than than previous -- is the money come -- -- guys like you.

Well I think it's going all over the place of but I think a lot of the -- -- is that money coming to someone like you -- I don't think I don't think they're awful lot of people who were big supporters of Obama who are not -- that -- -- you're coming over -- -- -- -- -- thanks for joining -- we appreciate you being with respect him -- --

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