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Larry Kudlow: Virtually No Recovery for 'Heart of Workforce'

Image: Larry Kudlow: Virtually No Recovery for 'Heart of Workforce'
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By    |   Friday, 01 Apr 2016 12:44 PM

Larry Kudlow, renowned economist and Newsmax Finance Insider, was far from impressed by Friday’s jobs report as the nation continues its worst recovery from a recession since World War II.

Nonfarm payrolls increased 215,000 last month and the unemployment rate rose to 5.0 percent from an eight-year low of 4.9 percent, the Labor Department said on Friday. The jobless rate edged up as more people continued to enter or re-enter the labor market, a sign of confidence in the jobs market. Average hourly earnings gained seven cents after slipping in February.

“This is an OK jobs report,” he told CNBC. “The biggest problem is the 25- to 54-year-old participation rate is lousy. That's the heart of the workforce that's had virtually no recovery. Tiny little recovery just in the last few months,” he said.

“That tells you something. Those people are not retiring. Those are the young people working for god's sake. We haven't fixed that. That's a big problem,” he said.

Elsewhere, the labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose a tenth of a percentage point to 63 percent in March, the highest level since March 2014, Reuters reported.

The details showed that some people entering the labor force were only able to find part-time employment. The number of Americans working part-time for economic reasons rose by 135,000 to 6.12 million, the highest since August, Bloomberg reported. That pushed up the broadest measure of unemployment, which also includes discouraged workers, to 9.8 percent from 9.7 percent.

Wage growth rebounded from a month earlier with average hourly earnings rising more than economists forecast after a 0.1 percent drop. The year-over-year increase was 2.3 percent.

Meanwhile, the sluggish wage growth has been a weak spot in the economy and a source of frustration for many workers since the Great Recession ended in 2009. Paychecks typically grow at a 3.5 percent pace in a strong economy, the AP reported.

That frustration has spilled over into widespread demands for a higher minimum wage.

California approved a measure this week to lift its minimum to $15 an hour by 2020, more than double the current federal minimum of $7.25. New York lawmakers have also approved a $15 minimum that will phase in over many years.

“Middle-income wage earners have not had a pay raise since year 2000,” Kudlow explained.

“That is not a Republican issue. Because some of that occurred under George W. Bush. Not just a democratic issue although it occurred under Obama. It's an American issue. The reason why people are so angry at this election and why the outsiders are doing much better than the insiders,” he said.

Kudlow joins the New York Post's John Crudele in trying to alert the U.S. public that essentially the government is lying to you each and every month. In short, don't believe anything you read in the monthly labor report.

"I’ve been investigating flaws in the nation’s unemployment calculations for years, including the fact that people who give up looking for work stop being counted as unemployed and that not all jobs are created equal," Crudele wrote.

"But the old statistical adage still holds: Garbage in, garbage out."

(Newsmax wire services contributed to this report).

Larry Kudlow is a senior contributor at CNBC. To read more of his work, CLICK HERE NOW.

To find out more about Larry Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com

To read more of Mr. Kudlow's blogs, CLICK HERE NOW.

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Larry Kudlow, renowned economist and Newsmax Finance Insider, was far from impressed by Friday's jobs report as the nation continues its worst recovery from a recession since World War II.
larry kudlow, workforce, labor, jobs
Friday, 01 Apr 2016 12:44 PM
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