Labor Department Admits Weak Economy for Most Americans

After some economists and analysts criticized the Obama administration for doing too little to stimulate job growth, U.S. Secretary of Labor admitted that most Americans are struggling even as the economy gains strength.

After some economists and analysts criticized the Obama administration for doing too little to stimulate job growth, U.S. Secretary of Labor admitted that most Americans are struggling even as the economy gains strength.

Speaking on November’s surging new job numbers, Secretary of Labor Thomas E. Perez noted that he remains “bullish” on the labor market. “With the addition of 211,000 jobs in November, the economy continues to recover at a steady clip. It was the 69th consecutive month of private sector job growth, to the tune of 13.7 million jobs created,” he said in a statement, adding that this was “the longest streak on record” for job growth.

Perez also noted that the job growth continued across multiple sectors, and that those hurt the most during the global financial crisis were seeing strong improvement. “Job growth in November was not just solid but also widespread, including very strong growth in construction,” he said.

Other Indicators Strong

Perez also noted that other economic indicators drive his optimism and indicate growing demand from American consumers and for American goods. “Retail sales for the beginning of the holiday shopping season have been encouraging. Auto sales were again very strong in November: 18.19 million at an annualized rate. The iconic U.S. auto industry, which was flat on its back just seven years ago, continues its remarkable comeback,” he said.

However, Perez did not mention the decline in exports and the recent fall of the ISM manufacturing PMI, which indicates that manufacturing has begun to shrink in the United States. Additionally, a strong and strengthening dollar has caused weak demand abroad for American products, despite political moves to encourage consumption of American products worldwide.

Weak Economy for Most Americans

In a paradox of logic, Perez acknowledged that most Americans do not benefit from improving economic conditions, and that the U.S. government has not done enough to improve the lives of the poor and most middle class workers. “There is still more work ahead of us to ensure that all Americans have their hard work rewarded and enjoy the fruits of this recovery. Too many families are still struggling to keep their heads above water,” he said.

Perez admitted that Americans see little help from public initiatives, and that the government and its various agencies “need to do more to raise their wages and increase their economic stability. We need to expand opportunity and ensure that the rising economic tide lifts all boats, not just the yachts,” he said.

More Education, More Savings, Higher Minimum Wage

To combat the rising income inequality and weak economy for most Americans, Perez said the Labor Department has made strides to focus on improving access to education, encourage the poor to save more and spend less, and urge Congress to increase the minimum wage.

“In recent weeks at the Labor Department, we’ve announced the availability of $100 million in grants to empower more workers with the high-tech skills they need to compete for the jobs of today and tomorrow. We’ve also issued a proposed regulation and other guidance that will make it easier for states to expand savings options for the nearly 70 million workers who lack access to an employer-sponsored retirement plan. And we continue to call on Congress to pass a long overdue increase in the minimum wage,” he said.