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Get back to the jobs report the number of jobs created during the month of -- missed pretty modest expectations.
Jobs were actually added to the economy but the expectation.
Was to see a rise of a 180000.
What should Americans infer from that number.
And how do we get more businesses to hire more people joining me now from Washington is US labor secretary.
Thomas Perez mr.
secretary welcome to fox business for the countdown to the closing bell.
Pleasure to be here with you.
Thank you so much what they're fifty directions in which we we could go with these numbers so -- just I've been with the fact that that yes it was a -- by about 111000 which frankly in an app itself is not so horrible but.
What became more worrisome to it to me and to perhaps some market watchers with the downward revisions.
For both July and June meaning not as many jobs as initially thought.
We're really created what should Americans think about these numbers.
Well there's two things I think that number one once again we have 42.
Consecutive months of private sector job growth to the tune of seven point five million jobs.
2.3 million in the last year alone.
The economy continues to grow at a steady pace.
As it relates to the the revisions from the last two months it's notable that the majority of those downward revisions.
-- in state and local government.
And in particular.
While the economy has grown over the last 42 months by seven point five million jobs and that's the private sector economy which has been driving the recovery.
At the same time we've lost 500000.
Governor -- job now and they're mostly in -- and let's drill down on that.
Who are the jobs what are the jobs have been lost its school teachers police officers.
Firefighters those are the jobs have been lost my kids are in public school right now.
And what they're seeing is class sizes are going up less teachers less teachers' aides.
And I've never I'm unaware of any recovery in which you've had no private set -- no government growth and jobs.
In fact both of the dress had a serious -- it is that that if businesses won't create jobs then government should create jobs but then you -- conservatives who said that this this bloated government needed to slim down.
Idiots and we did see the unemployment rate ticked down to seven point 3% from seven point 4% but.
Part of the reason the rate declined is that the overall labor force dropped by 3121000 sort of the the theory being that that's a possible sign of discouraged long term jobless folks.
Dropping out of the hunt.
And yet critics want this number lower than seven point 3%.
What well how do you see that why it.
Ideally -- should have hit our vote.
Well the unemployment rate is that should undeniably be lower end and the self inflicted wounds.
The sequester -- what I just described in -- state and local government if if the unemployment rate if if we had just remained flat in the government sector.
Kept those teachers and firefighters.
And police officers -- unemployment rate would be below 7%.
And the other thing about.
Labor force participation.
It's important to note that we keep a number of different statistics at the Department of Labor.
And there are other indicators of unemployment that actually take into account discouraged workers they take into account workers who are.
Barely attached to the market.
And you look at the trends in those.
Areas and are my geeky economist friends call that the -- five and they -- that acts and those have been trending downward.
In a productive way over the last year.
We only have a usually -- and I had enough to -- we had a money.
Expert armed with billions in assets under management uses the one thing he was looking -- is that -- six which.
Which in essence I believe says that people -- or it's the number of people who -- working part time due simply to the economy but.
You know inferring how the economy looks and let's be fair and balanced economy has split off from the markets the markets are up.
Unbelievable we strongly over the past year end and today the markets like the number although we're we're seeing gains -- here with the Dow up now just about fifteen points but.
What does the number two days say about the health of the US economy and will we see in August provision -- what we saw with the July revision just a little tough to stomach.
Well again I think what we see is what I've I've described earlier the economy continues to grow.
At a slow and steady clip 42 consecutive months of private sector job growth 2.3 million jobs in the last year.
You see you look at auto sales and you see that the largest auto sales.
Since the end of 2007.
-- right you see you look at the retail sector.
You look at the hospitality sector people are going out to eat more people are going on vacation more.
And what that tells me is that people are more bullish about the future we have to pick up the pace and that's why the president's.
Better bargain for the middle class is so critically important because we have to invest in infrastructure.
We have to pass immigration reform would want to grow the economy right we have to do all of those things that will pick up the pace of recovery and lower the unemployment rate.
-- people -- hope that the 800 billion plus stimulus was was for things like infrastructure where he would see that that gigantic number of jobs really start to.
Come to pass but but you know that's that's not happening at least in the moment but let's quickly talk about the the tapering affect you as the new labor secretary.
Are you doing anything in advance of the -- tapering are -- -- meeting with business leaders are you talking to them about why.
I don't know what what it -- -- don't be afraid to hire once we start to see taper because it is inevitable that we would -- tapering of these huge -- buying purchases what are you doing -- -- for -- -- Well and a number of things that first of all.
I'm letting -- fed make the decisions that the Fed makes the Fed -- monetary policy and we do fiscal policy.
And I've spent a substantial amount of my first month and a half on the job.
Talking to CEOs and hear the two or three things they tell me.
Number one we should continue to invest in skills so many employers who want to hire want to expand but.
They are seen too many people coming through the door who don't have those skills to compete and we're doing a lot about that to help them match their needs with the skill sets of people.
A number two.
There's sand that we need to invest in our infrastructure either I own a company that has to transport products across the country.
When we have crumbling roads and bridges that slows me down and hurts my bottom line and number three.
We have to pass immigration reform I hear this consistent cacophony.
From the business community that I need my high steelworkers.
I need workers in the -- industry I need workers.
In every sector and immigration reform will.
Grow our economy will increase our capacity.
To save Social Security for another two years will increase GDP.
People spend more because they'll have one that's what I'm hearing.
From the business community and that's why the president's working so hard on those.
Well let's hope that congress gets -- move on with immigration definitely -- secretary press thank you very much we appreciate it -- it was a pleasure to be here.
Thomas Perez as the US labor secretary.
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