Did Obama Create 4 Million Jobs?

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Note: 3rd in a series on President Obama’s job creation record
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President Obama’s claim to have created 4 million new jobs has gotten a great deal of attention lately.

That jobs claim has attracted more attention because of a 30 second Obama Campaign ad by Sarah Jessica Parker where she proudly says:

The guy who created 4 million new jobs…That Guy… President Obama and Michelle are coming to my house for dinner
– Sarah Jessica Parker, Obama for America TV Ad, 6/3/2012

The ad is for another of the big Obama Hollywood fundraisers at celebrity homes that started with George Clooney’s record setting fundraiser last month. Parker’s fundraiser is next week. The ad has got nearly 100,000 views on YouTube alone.

The 4 million new jobs figure has got so much attention that an article I wrote on the subject three months ago has started topping 50 reads/day:
Obama Claims 4 Million New Jobs
– Azleader, Inform The Pundits!, 3/11/2012

For me, that is a lot of reads for a 3-month old news article and more than it got when first published.

This is a good time to re-examine President Obama’s 4 million new jobs claim.

President Obama’s Current Job Creation Numbers

Its been three months since my first article appeared. Today, the President correctly claims 27 months of private sector job growth instead of just 24. His job creation claim is now 4.3 million new jobs created.

Now, as it was then, the President is still committing two statistical sins:

  • He isn’t including the total jobs picture
  • He cherry picks data his policies have had little or no relationship to

Labor Force Statistics from the Current Population Survey (Source: BLS Rpt. LNU02000000)

In real, not seasonally adjusted, numbers over the last two years the real total numbers of jobs created in the United States is 3.42 million jobs… not 4.3 million as the President claims.

There are three important differences between the numbers above and what the President, and Sarah Jessica Parker, espouse:

  1. The numbers in the above chart are for total employment, not just private sector employment
  2. The numbers in the above chart are real and not seasonally adjusted
  3. I only include the last 24 months in my total, not the last 27

Though it is unfair to exclude the first three months of real job growth in the chart above from my total; I limited mine to the last 24 months because then the real numbers are not skewed by seasonal employment variations that show up if you list them outside exact yearly increments.

You can plainly see the last 3 months on the chart above strongly favor the President.

However, my exclusion is nothing compared to the President and Sarah Jessica Parker who ignore the first 13 months of Obama’s presidency where there were millions of jobs lost.

It legitimately is said President Obama was not responsible for those millions of lost jobs. They were generated by conditions existing before he became president.

That being said, lets move on to discuss what job creation President Obama is actually responsible for.

President Obama, ARRA and Public-Sector Job Growth

Public Sector Jobs Losses Under President Obama (Source: BLS Rpt. CES9000000001)

President Obama’s main economic recovery initiative is The American Recovery and Reinvestment Act of 2009 – ARRA.

One of the requirements of the act was a full public reporting of both total number of jobs “created or saved” and spending accountability down to the penny.  At the federal level, all that summary data is reported at www. recovery.gov.

It is beyond the scope of this article to show, but the vast majority of the jobs created or saved in ARRA, by design, were public sector jobs. In order, most of the jobs saved were teacher, first responder and prison guards positions. Those jobs were all state and local positions. Yes, they are all important!

ARRA did create temporary road construction and a smattering of green energy jobs.

Btw… the spike in public sector jobs in May 2010 were temporary census-taking federal jobs.

As can be seen above there have been 607 thousand public sector job LOST under President Obama. Those are the ones ARRA was specifically designed to save.

The reason public-sector jobs were lost is because ARRA itself did not create sufficient economic activity to generate enough tax revenues to save them after ARRA funds ran out.

Conclusions

The Great Recession officially ended in June of 2009. Though the President wasn’t responsible for conditions that existed before he took office, he can and should be held accountable for what happened after the recession ended.

The President, and Sarah Jessica Parker, misrepresent his job creation record in several key areas:

  • They ignore public sector job losses that ARRA was specifically designed to save
  • They only acknowledge private sector job growth that his policies did not generate
  • They ignore the millions of jobs lost in the first year of his presidency

That is really to bad. Matthew Broderick has one smoking-hot looking wife in Sarah Jessica Parker!!

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About azleader

Learning to see life more clearly... one image at a time!

Posted on Jun 9, 2012, in 2012 Elections, ARRA, Barack Obama, Business, culture, economics, Life, news, Opinion, Politics. Bookmark the permalink. 10 Comments.

  1. Your article made me think. You wrote that the ARRA did not produce the stimulus necessary to increase tax revenues once the federal funds ran out. So I was wondering: if the GDP has returned to pre-recession level, why havent tax revenues?

    • Good question…
      GDP has bounced back. GDP is always the first thing to comeback in a recession. There is a new phenomena in recessions called a “jobless recovery”. Economists say it has occurred over the last 3 recessions.

      Obviously, in a “jobless recovery” there are fewer jobs and therefore less income tax revenues coming in. That is what has happened here.

      • In terms of tax revenue, do it really matter what the unemployment rate is? It would seem that we should be producing more revenue because we are producing more (presumably) taxable wealth. The lack of jobs is an indicator that most of the wealth that has been created since the recession is concentrated in fewer hands (the wealthy). I may be missing something here but it seems to me that as a nation we are producing more wealth and that wealth is concentrated in the hands of people in the upper tax brackets, therefore revenues should be increasing too, right? Personally, I find that tax system confusing. Thanks for fielding questions that are somewhat off the topic of your post.

  2. The one thing that I’m still really confused on, was this dinner thing with the Obama’s. Were the Obama’s coming to Sara Parker’s house for dinner or was Parker pulling the carriage that would take the Obama’s to dinner? Charlize Theron, Milla Jovovich, Jessica Biel, SMOKIN’ Hot. Sara Jessica Parker could make a freight train take a dirt road.

  3. Search forwards to reading solon. Zealous journal article.Such thanks again. Enthusiastic.

  4. I likewise believe therefore, perfectly indited post!

  1. Pingback: Obama Claims 4 Million New Jobs « Inform The Pundits!

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