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Former CBO Director Douglas Holtz-Eakin argues that the government’s numbers do not reflect the current state of employment in the U.S.
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Directly we got a surprise drop in the unemployment rate Friday mainly because of the households.
If that would be 60000 people -- in.
And from that miraculously.
We found that 873000.
People had joined the world for us.
But I'm Bonnie and company we want to focus on what we called the real unemployment rate which is.
Fourteen point 7%.
We take into account -- unemployed and the underemployed that's what you got fourteen point 7%.
Joining the company from Washington Douglas Holtz Aiken is -- director of the Congressional Budget Office under George W.
Bush so welcome back the program good to see again.
Thank you I think that seven point 8% unemployment rate and the miraculous discovery of 873000.
People walking.
I think that paints.
The wrong picture.
Of the unemployment situation in America today do you agree -- -- do you focus on 147.
I will certainly be 873000.
Jobs period in the household survey.
Our thoughts with every other piece of economic data we have about September in the United States and he looks more lower as you stare Raddatz.
That this is just a statistical fluke that you know there weren't 872000.
Jobs created there weren't 560000.
On part time jobs created.
That instead it's better to set aside that number look as you do -- the broader measure of -- on unemployment unemployment fourteen point 7%.
Look at the payroll survey -- the 1141000 jobs created and it looks like more of the same and economy drifting sideways not fallen off a cliff but not growing by any means.
What kind new jobs all we actually creating I mean that report said of the 500000.
Part time jobs or I don't know what kind of part time jobs they were.
But -- 1141000.
Full time jobs reported by employ this seems to me that this is not really adding to the amount of money that Americans.
Well we don't know job by job the so called quality of the -- the high quality jobs were holding jobs but we do know.
That in this recovery since June 2009.
We have seen in need that growth in the real inflation adjusted take home pay disposable income it's one of the hallmarks of this recovery.
Those who've had jobs haven't seen a raise haven't seen enhancing their standard of living.
September's report showed some growth and hours it showed some growth and hourly earnings but it doesn't show that two and three percentage point growth in real income that you need to -- -- robust recovery now the president says we are at least headed in the right direction.
Would say of that.
Well.
We're going north not south that's good and we're doing at an really really disturbingly slow pace.
I think there's a lot of evidence that we could do better then -- averaging -- 150000 jobs over the three years or recovery we've -- average north of that with some policies that.
Don't top off.
Table the Specter of -- 440 billion dollar tax -- increase at the end of the year.
They gave us an entitlement and tax reform took off the threat of a big financial crisis and and certainly I think -- the the level of regulatory burden has become one of you know sort of recurring themes of the recovery.
We've got one more jobs triple before the election that will be the Friday before the election on the following Tuesday you expect a big revision.
And those numbers that we saw last Friday.
Well if if you believe as I do that most of the jump in those jobs the the 173000.
Was a mirage that will go away.
And at the same time the drop from eight point one to seven point 8% will also go away so I would be entirely.
Harmful prediction and we'll see jump up in the unemployment rate that we know more real than was the jump down but on average will be growing and slowly.
All right Douglas Holtz -- -- always a pleasure thanks for joining us thank you okay so.
