The U.S. Economy Added 431,000 Jobs in May, But They Mostly were Government Jobs

(Reuters) President Obama said today that the gain of 431,000 jobs in the month of May is a sign the economy is getting strong again. Although there still will be ups and downs going forward. "This report is a sign that our economy is getting stronger by the day," Obama stated in remarks to about 50 workers at a large truck garage in Maryland. "A lot of businesses that were hit hard during this downturn, they are starting to get their jobs back," he said. Obama exclaimed there would be ups and downs ahead in the future. The Labor Department said today payrolls rose to 431,000 jobs as government added 411,000 workers to conduct the U.S. Census. That is the largest monthly increase since March 2000 and one that marked a fifth straight month of gains. U.S. private employers hired fewer than expected workers in the month of May. U.S. private employers hired 41,000 workers, compared to supposedly 218,000 in April, a setback for the labor market economy even as temporary Census hiring pushed overall payrolls growth to its fastest pace in 10 years.

The labor report for jobs in May is very bleak, to say the least. Most of the jobs that were added were Census jobs, which are temporary. President Obama admitted most of the gains were U.S. Census jobs. However, every ten years there's a hiring of government workers to conduct the U.S. Census. That's nothing new. However, job growth in the public sector won't grow the economy. President Obama can't boast about the economy since it added mostly Census jobs which are temporary and will last until the Fall. In order to determine whether an economy is on the road to recovery, you must calculate the number of private sector jobs being added to the economy. The economy is grown through the private sector. The economy doesn't grow through government jobs. I do recognize there's a need for some government jobs. I'm not opposed to government jobs in and of itself. However, in order to create a government job, money must be collected in some form to pay those government workers whether it be through taxation, or borrowing money from China, or the Federal Reserve printing new money. The money to pay government workers must be levied somewhere. The jobs that have been created since President Obama took office are government jobs. We've seen a lot of growth in government jobs the last couple of years. However, the economy won't recover unless the private sector adds new jobs to the economy.

Whenever the private sector adds jobs, then there are new sources of revenue for the government to levy. The more workers there are in the private sector, the more payroll receipts there will be going to the government. That's what's needed. It's the private sector that benefits the government when it comes to raising needed revenue. The problem we're facing right now is there have been numerous jobs that have been eliminated in the private sector since the mortgage meltdown in 2008. Therefore, we have less revenue that's going to the federal government. The government's answer is more taxation. The government needs to reduce taxes on small and medium-sized businesses so they can create more jobs. Also, the tax rates of the average citizen needs to be lowered as well so they'll have more disposable income to purchase goods and services. That's very simple logic. The problem is the government wants to be in control of the economy and every aspect of our daily lives. The government's in the process of trying to take over portions of the private sector such as the healthcare industry, banks, General Motors, and Chrysler, for example. The government needs to allow private business to invest so they can create more new jobs and as a result additional revenue will be collected by the federal government.

When Congress passed the $787 billion stimulus bill last February, they should've allocated that money to helping small and medium-sized businesses so they can create more jobs. Instead our government used that money to help those that financed their campaigns. Also money was spent on unnecessary projects as well. Those corporations that did receive bailout money were AIG, General Motors, and Chrysler. Consequently, those corporations aren't going to create new jobs for America, at least not for the time being. It would've been more beneficial to help the small and medium-sized businesses. They're the ones most likely to create new jobs. Until the private sector adds more jobs on a steady basis, we have a long way ahead towards economic recovery.