U.S. Congressman Kevin Brady (R-TX), the Vice Chairman of the Joint Economic Committee, made the following statement based upon today’s release of Employment Situation Report for June 2015 by the Bureau of Labor Statistics (BLS), which reported an increase of 223,000 nonfarm payroll jobs (all in the private sector) and the unemployment rate declined to 5.3 percent. BLS also reported that the labor force participation rate declined to 62.6 percent, the lowest level since October 1977. Both the labor force and the number of people counted as employed declined in June.
“Today’s jobs report is indicative of the Obama recovery’s six years of failure. The harsh reality is that the Obama recovery has failed to produce enough jobs to bring relief to Main Street America.”
- Private-sector Jobs Gap. Compared with the average of other post-1960 recoveries lasting more than one year, the private-sector jobs gap rose to 5,725,000. Compared with the Reagan recovery of the 1980s, the gap stands at 12,346,000 – a new high.
- Closing the Gap. Eliminating the Obama recovery’s private-sector jobs gap compared with the average of post-1960 recoveries by the end of 2016 would require the addition of 453,000 private-sector jobs in each of the next 18 months. Closing the gap compared with the Reagan recovery would require 882,000 private-sector jobs in each of the next 18 months.
- At This Pace. Private-sector job gains have averaged 207,000 over the past six months. At that pace the private-sector jobs gap would be reduced by 23 percent (1,295,000) to 4,430,000 by the end of 2016.
- Labor Force Participation Rate. The labor force participation rate declined by 0.3 percentage point to 62.6 percent, the lowest since October 1977 when the labor force participation rate was 62.4 percent.
- Employment-to-Population Ratio. June’s employment-to-population ratio declined by 0.1 percentage point to 59.3 percent. At 59.3 percent the employment-to-population ratio is once again below where it stood when the recession ended six years ago and significantly worse than the 62.7 percent in December 2007 when the recession began.
- Unemployment Rate. The unemployment rate would be 9.7 percent if the labor force participation rate was at the level it was when President Obama took office (65.7 percent).