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Former Labor Department Chief of Staff Paul Conway and Economic Policy Institute Director Christian Dorsey on California’s reporting of its jobs num...
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So we knew it didn't add up we reported last week that California's jobs numbers were not right and the state demanded that we were tracked it -- cast at.
Today California reported close to 72001.
Time jobless claims for the week ending October 13.
Shocking 60%.
Increase.
From the -- -- 60%.
Turns out we were right.
We don't gloat because you know we're not like that sort of nasty constructive question instead just that.
Paul Conway is a former just.
Staff of the Labor Department Christian Dorsey.
Is the director of external and government affairs with the Economic Policy Institute gentlemen thank you so much for calling and coming on the show -- you're laughing already.
Eleven to smiling OK RA so what do you think happened Christian.
By having part of it is it is certainly something that happens typically this time when you have a change in quarter in the states.
You know not to get too technical but basically whenever you move into a new quarter.
It becomes more advantageous for people to file at a certain date.
When benefits can -- up higher in California that date was October 7 for the starting in the quarter.
So where is he would typically see in other states.
The week before.
Fairly large increases in jobless claims in California they came a week later but.
You know for me I don't look at the week to week noise in the unemployment claims look at the four week rolling average we have really tells you true picture.
Now Paul those are good points but -- -- It convenient to me I don't know what do you fact that.
Well -- say what I don't think it's ever good thing when you.
Shift the blame from a government entity actually on to the people themselves.
So while there is a lot of talk about people gaming the system here.
I think the most important thing is to focus on.
The state of California in what responsibilities they have in support of the Department of Labor in getting this data reported accurately and I think it's a fair shot even though they acts.
For a retraction from you the state of California I think he's not completely clean on this one and that exactly is what set -- ripple over the past two or three weeks.
Yeah -- the bottom line is that California September unemployment rate was the third highest in the country at ten point 2%.
When this number came out and we were questioning at your folks out there say well maybe California.
Is just you know all sending that advanced it technology boom going on in and you -- -- doubting their recovery and now it seems like.
Maybe we were right to -- Christian what do you think is is the problem in California right now.
That -- unemployment rate is so high person I'm not picking on you know their staffs any longer we can I feel like we won that arguments we can sort of -- back to the side.
What is going wrong in the in the very serious employment picture we have people out of work and they want to be back to work.
Well yeah California's slightly above -- -- at least nationally but their problems really reflect what we're seeing nationally and that is not significant enough.
Improvement in the macro economy in order to.
Stimulate robust hiring we have.
You know if you take away the specifics of California's numbers -- if you look at the overall Melissa what we have.
Are the conditions -- really modest.
Improvement in hiring and that's what's contributing to the overall economic Malays that we see with.
Numbers that are here and there indicating recovery -- stagnation.
You know we're overall we're just kind of treading water at.
This -- out yet Paul I mean at this rate it's gonna take us better than nine years I think to get back to the level we work.
You know the low during the last administration and I understand you know it's all about the economy there's so many factors out there what do you think would turn all this around.
Well I mean we're we're very interest in serving people asking them what they think.
And I think there's a growing consensus that what needs to be done is.
The value of the entrepreneur in the business -- in the courage of those who have the resources create jobs should be elevated -- not denigrated and what that means is creating an environment through tax cuts.
In deregulation.
That allows people actually invest in business and get all the capital on the sidelines.
Off the sidelines you have things like the president's health care that's undecided the tax -- that's undecided.
That type of environment needs to be settled out to give business some type of certainty to begin hiring Christian what -- think about that.
Well you know a year ago these things were at least settle for the near term and we haven't seen the associated gains in hiring.
Won't really need is that to stop thinking that you know we just continue the same policies that we've been.
Are pursuing that we're all of sudden gonna get different results -- -- -- there.
Well we -- what we ought to do is do what we haven't done since 2009 Melissa and that is get serious about a multi -- infrastructure investment I had -- slot it has proven to have extremely huge returns the economy and it's certainly much more productive.
Any economist will tell you been pursuing the tax cut policy which.
Well I don't think any economist will tell you I and I think you know Milton Friedman overrides about the -- to tell you that's not the case -- get Marty Feldstein in here to tell you that's not the case everybody from the Hoover Institute.
Tell you that's not the case that.
Paul what do you think.
What's your response to that we invested in us -- get those shovel ready jobs going.
I think at the end of the day if you ask people -- what's appealing to you to get your capital off the sidelines get back into your business streams.
To create jobs people aren't they jump up for -- about a five year bridge building plant they had serious about this this is about people being able use their money to create -- jobs that they need to do to meet the demands that they have.
And get government out of the way and it's not going back -- all policies actually looking forward because we need to get out of the old policies of the past three years and start doing constructive things especially for young Americans -- have the highest level of unemployment since World War II.
Now gentlemen thank you so much for coming -- we appreciate your time good thoughts -- both sides.
