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Former Council of Economic Advisors chairman Martin Baily discusses how to fix unemployment.
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Found out about Friday to call that the unemployment rate surprisingly dropped to seven point 8% last month of -- and all this talk since then on whether it was a a real number which it is.
Is the report revealed that there are still some.
Real employment problems in the country that need to be fixed so let's talk about that right now what Martin Bailey former chairman of the council of economic advisors -- -- President Clinton.
Joins us from DC.
Right now so we at least on the show -- dismissed this idea of a -- you know conspiracy to sit that this number somehow -- no evidence to support that at all.
But in talking about that as -- mentioned we miss the fact -- hate the U six rate the so called real.
Unemployment rate includes sea of people -- discourage that state fourteen point 7% not good.
Fewer private sector jobs than forecast were added last month again not good so for President Obama do you think.
Unemployment is still -- a political liability at this point.
While unemployment is still too high much higher than I think he.
The report was a good report -- I'm glad you -- it wasn't conspiracy.
Those -- folks at statistical agencies are pretty independent.
So it was a good number but you're quite right there a lot of people unemployed.
Not just -- seven point 8% but the people who.
Would like to have jobs but many are not looking men and -- it.
Have given up so we need a much stronger jobs market overall to bring those people back into the work force may be.
Two to three million and that would come back into the work force of the prospects -- -- Now we show this number that we need to at a thousand jobs a month.
You know in order to get the end economy at least get get -- been going to some extent again it even that there's some debate on the amount of jobs we actually -- per month and you know it we have two different surveys this past -- on a 114 and that particular survey the establishment survey were added the 873 -- -- screens from the separate household number.
The two thirds of those.
Were part time jobs so -- comes up in the next debate and not governor Romney tries to bring up these issues that I raised with you how should President Obama handle it should say.
No we're on the right track things are getting better or say well we have a lot more -- -- Hot ticket I if I would not say both of those things that I think.
You know he he can claim that things have gotten -- that he inherited a bad situation and it's now improving and and the last report was was pretty good even on -- yeah.
Payroll side because they revised up the two previous months.
But on the other hand we certainly haven't had that kind of plus 200.
A thousand jobs that numbers that you that you mention that we would really like to see maybe even more than that.
To get the -- we limit down to a reasonable level.
Are we our way there or is there -- any possibility again dismissing the conspiracy theories and all that aside is there any possibility this is just a one off this is just a fluke statistically.
Because you see that that that household numbers ridiculously volatile and goes up and down all over the place it.
Well -- that part of -- that's volatile is the -- Point nine number and -- in this survey is designed to really to measure unemployment and yes it does go up and down it's only one month data.
Remember all around us say Europe and Japan and China our whole weeks so.
We are an -- -- -- -- -- -- -- I don't think it's a sure thing we're gonna have a continue recovery but I think the chances -- that will.
We know -- keep going five Martin thank you again for always coming out this doctor Martin Bailey with the -- from DC thank -- --
