Private Jobs Down 4.6 Million From January 2008; Federal Jobs Up 11.4%


altPresident Obama’s statement Friday that the private sector is “doing fine” drew so much ridicule that he was forced to backtrack hours later. But it’s clear that Obama and many other Democrats see job problems — and solutions — starting and stopping with government employment.

A quick look at payroll stats shows that’s not the case.

Private-sector jobs are still down by 4.6 million, or 4%, from January 2008, when overall employment peaked. Meanwhile government jobs are down just 407,000, or 1.8%. Federal employment actually is 225,000 jobs above its January 2008 level, an 11.4% increase. That’s right, up 11.4%.

Private payrolls have been trending higher in the last couple of years while government has been shedding staff. But that’s because governments did not cut jobs right away. Overall government employment didn’t peak until April 2009, 16 months after the recession started. It didn’t fall below their January 2008 level until September 2010.

The recession was boomtime for federal employment, especially after Obama took office. Federal jobs kept rising (excluding a temporary Census surge in early 2010) until March 2011 — more than three years after overall payrolls peaked.

Obama’s 2009 stimulus did little to revive private jobs, but did funnel massive funding to state and local governments. That, however, only delayed the day of reckoning for states and cities to curb spending. They finally did significantly slash jobs in 2010 and 2011. But those layoffs have slowed to a crawl in recent months — averaging less than 3,500 job cuts a month since November.

It’s easy to argue that Obama’s tunnel vision on government employment reflects his complete lack of experience in the business world. But it’s also mainstream Democratic thinking.

The Wisconsin recall election was about liberals’ zeal to maintain government employees’ privileges far and above those of struggling private sector workers who pay their salaries.

Payroll change since January 2008

Total: -5.01 million  -3.6%

Private: -4.61 million  -4%

Government: -407,000  -1.8%

Federal Government: (excluding post office) +225,000  11.4%

Sources: Labor Department, Datastream

Update: Why does Obama think the private sector is "doing fine"? "We've seen record profits in the corporate sector." And high corporate profits are good for tax revenues to pay for government programs and government jobs. That's the main reason Obama cares about the private sector.

Follow Ed Carson on Twitter: @EdCarson1

Share:    Digg This!; Google Stumble It! Facebook MySpace Bookmark
Add New Search
Transplanted Texan  - Requiem for Common Sense   |06-12-2012 13:44:30
Much has been made of the failings of the US education system to produce
citizens who can think. But this goes beyond ignorance. It defies common sense.
Only the private sector creates wealth. Government does not create wealth (no
matter what Ben Bernanke thinks his printing press can do). It consumes wealth.
At most, it redistributes wealth created by the private sector without adding
any value in the process. Government jobs do not add value to the national
economy. Government jobs and those of its fellow travelers (like trial lawyers)
consume the wealth created by the private sector. Government jobs are parasitic
becasue they live off of the wealth creation of the private sector. If the
parasite (government) kills the host (the private sector), it will inevitably
die itself (like Greece where almost half the population was empoyed by the
meta4man  - Why is this one chart saying the reverse of every   |06-12-2012 13:43:33
Enlighten me, where do these FACTS come from, when every other source has the
private sector holding more jobs now and public sector labor force the lowest
since the 50's?
GODOT  - TRAVELER   |06-12-2012 13:34:51
Democrats think money grows on trees owned by the "rich" and taxing
"them" more solves all problems...except somehow most of the taxes und
up impacting the middle class instead.
Good Lt   |06-12-2012 13:33:49
According to that chart, it looks like the economy is doing just fine.
Mark G.  - 4 More Years   |06-12-2012 13:32:35
We need to give Obama another 4 years so he have the government hire all the
brodave  - True American   |06-12-2012 13:27:05
These facts prove that Obama has once again lied to the American public.

He is
an evil, destructive leader.

Vote for anyone other than Obama and his Democrats
this November - and beyond.
RWM   |06-12-2012 13:22:06
"Republicans" vs. "Democrats" suggests you're focuing on
ideology. The root cause of our problem is that we have pure ideologues in our
government without skills in any aspect of business, making decisions about job
creation, energy policy, health care, etc. Here’s a quiz: You’re a pilot
and survive a crash landing in a jungle and have a choice to save only one of
two passengers from the burning wreckage. One is an ideologue. The other is a
survivalist. Which would you pick? So, we need help with job creation. What
can an ideologue do? Redistribute wealth?
alnga   |06-12-2012 13:10:20
This took both parties to tube our economy. There are liberals that are
concerned with bringing home the bacon to their districts in both parties. That
being said there is only one solution. Lets make it punishable to present to
Congress any bill that will break a preset budget or create any unsubsidized
items fo the states to cover with their limited budgets. Make your congress man
think before they act.
WarPony  - Divide and Conquer   |06-12-2012 13:03:31
Caught in a dualistic paradigm of the choice between the lesser of two evils, WE
will always end up with evil. Soap box, ballot box, jury box and cartridge box
- for freedom. Once the money-monopoly was given to a private corporation (the
FED), it was only a matter of time before the international bankster mafia
cartel would rule via financial conquest.
Craigmk1974  - Craig   |06-12-2012 12:48:08
What I don't understand is how Obama can continue to drive the United States
down the path of fiscal recklessness when he sees what is happening in Europe.
He just doesn't have a clue. All he is does is double down on the same things
that got Europe in the mess they are in now.
Sammythebu11  - Math has never been obama's strong subject   |06-12-2012 12:43:30
what a joke!!!! if we would have taken his word from last friday (or last 4
years!!!!) we would have been led to believe that we are doing GREAT and that we
are spending less than before. I feel sorry for all the liberals that still
believe his cr@p, his selective memory is amazing, according to him the
government has created 4million jobs in 27 months, when was the last time the
government created ONE private sector job?
we NEED to get out and VOTE come
NOvember, we can not take ONE vote for granted
Ranger01  - No Kidding!   |06-12-2012 12:42:50
The only jobs out there that can be found are CONTRACT! No corporations are
hiring, only cutting, replacing well paid staff with newbees that are cheap. No
Employees, no benefits on Contract cooks the books for investors. Who is working
numbers are not telling this story.
Gompers  - Minimum wage   |06-12-2012 12:28:31
In their haze of progressive economics,

Dems believe that if we'd just set

the minimum wage to $50/hr,

everything would work out fine.
Gompers  - Facts   |06-12-2012 12:26:13
Look at the facts and who controlled government at what points in

Unemployment chart:

participation rate:
Tom EE  - Obama's Goal   |06-12-2012 12:25:20
In 2008 he claimed this country was too powerful. Obama's goal has always been
to destroy this country.

Once he completes his task, he'll go home to Kenya a
Testicules  - It's the congressional democrats who should be han   |06-12-2012 12:23:29
I see the democrat shills have been programmed to shriek objection to measuring
from the spring of '08. In an attempt to obfuscate, the do sort of touch on a
valid point. We tend to mark political time by presidential terms. This leads
to a lot of misunderstanding. Fiscal matters are primarily influenced by
Congress. It should be noted that the Recession/Depression started in '07, six
or eight months after the democrats took congress. The debt did not explode
until they achieved "super majority" status. It should also be noted
that during most of the Bush era, the "Republican majority" was by a
seat or two. Nothing passed congress without the democrats being on board. For
those of us who remember that era, it was the democrats who were demanding ever
more spending and debt... Sorry, all of this mess is squarely the fault of the
radical left democrats, like it or not.
Gompers  - Marxism would have succeded in the USSR   |06-12-2012 12:19:59
Dems believe that Marxism would have succeeded in the USSR if not for
obstructionism by the Russian Tea Party.
D.Paul Logeman  - inspector   |06-12-2012 12:18:55
The truth is that comrad president Obama couldent speak the truth if
it crawled
into his mouth volentarily.
He would swallow it before he would
ever let it get
Gompers  - 4.4% before Dems took Congress   |06-12-2012 12:17:24
The unemployment rate was 4.4% as of 12/31/2006.

Three days later, Dems took
total control of both houses of Congress. That's when the misery started.

cost $200k per job created by the Stimulus Act while it costs 1/10 that ($20k)
per job created by venture capitalists.

For every job Barry
"created," 10 new private sector jobs were destroyed.
RufusVonDufus  - The Big Lie   |06-12-2012 12:13:09
I just love how Obama and his administration tell us that unemployment in Spain
tops 22% right now. I wonder if they understand that Spain does not throw
anyone out of the equation just because they quit looking for work like the
Obama dem's are doing. Put all of those people back into the equation and see
what Obama's unemployment numbers become. Remember, Obama, it is OUR WH, not
yours, OURS and you are like a Section 8 renter.
markw  - Hospitality industry jobs disproportionately elimi   |06-12-2012 12:10:58
US average unemployment rate is 8.2%, but the hospitality unemployment rate is
9.7%. Here's the reason...government over-regulation, read more at link
RufusVonDufus  - Obama's Fed Jobs   |06-12-2012 12:08:07
Obama's plan to resurrect our economy is to hire nothing but gubment workers at
taxpayer expense. What's new? He has no idea what the economy is all about,
but he will go on and on trying to destroy it along with this country. Anyone
voting for this car wreck in November needs to have a brain scan to see if they
have one.
Kevin Stowell   |06-12-2012 12:05:30
The next time an Obamrrhoid tells you the public sector makes the private sector
possible ask them which can live without the other and make them tell you why.
D.Paul Logeman  - D.paul Logeman   |06-12-2012 12:04:26
The fact is that comrad president
Obama couldent tell the truth if it
into his mouth itself.Obama
would swallow it before he would ever let it get
GST72  - Proud Conservative   |06-12-2012 12:03:40
To answer those who questsion why the data starts in 2008 and because of that we
shoudl not hold Obama responsible I say don't forget who controlled Congress in
2008 -- the Democrats and they started to maximize their control by pushing
government employment as fast as possible. If you wan tot look at the facts,
ask yourself why his Lordship Harry Reid has not brought a budget to a vote in 3
years, in violation of the law. By law the goverment should be shut dow.
Kevin Stowell   |06-12-2012 12:02:37
Limbaugh spent much of his show yesteday building his case for believing that
Obama believes the private sector exists because of the public sectory and

The logic that the exact opposite of that is the truth completely
eludes the Obamarrhoids. Barackruptcy here we come!
Milt  - The Battle   |06-12-2012 11:59:23
The battle lines have been drawn, Capitalism vs. Socialism: it’s us, the hard
working tax-paying, god loving Americans against the Sycophant Hollywood crowd
supported by the liberal media and the Welfare receiving, EBT using, lazy,
sucking the teat of America dry. Only this time your Hope and Change is Hype and
Blame and we won’t be fooled by your phony unemployment figures or your lying
liberal press buddies, or your negative attacks, since that’s all you have.
Milt  - Danger   |06-12-2012 11:55:15
The danger to America is not Barack Obama but a citizenry capable of entrusting
a man like him with the presidency. It will be easier to limit and undo the
follies of an Obama presidency than to restore the necessary common sense and
good judgment to an electorate willing to have such a man for their president.
The problem is much deeper and far more serious than Mr. Obama, who is a mere
symptom of what ails us. Blaming the prince of the fools should not blind anyone
to the vast confederacy of fools that made him their prince. The republic can
survive a Barack Obama. It is less likely to survive a multitude of fools such
as those who made him their president.
MountainHome   |06-12-2012 11:54:07
Obama - "You lie"
A Estefan   |06-12-2012 11:49:31
"Some who reads" should add ";but does not think" to their
screen name.

What's lost on these people is that presidents are elected to
govern and fix (if it is broken). My 4 year old could tell you if something is

We don't need execuse; we need solutions.
Cornholio  - Obama   |06-12-2012 11:46:03
Obama is a complete failure. If you support him you are a lemming, willingly
running toward the cliff of economic failure... enjoy the ride.
Someone who reads   |06-12-2012 11:40:41
The data is since January 2008. Obama didn't take office until January 2009.
MILLIONs of private sector jobs were lost before January 2009. Nice try.
republicrats_democrans  - How Dare They Hire Talent to Take On the Work They   |06-12-2012 11:30:20
Shame on them for hiring people when so many were unemployed. Part of their job
creation strategy should have been firing people, that's how Romney does it. In
the face of the most unprecedented "recession" (I still call it a
re-marketed depression) they should have been firing people from within the
government especially when trying to claw our way out of this hole. Keep
"strategerizing" dimwits. Funny how the title of this article compares a
percentage to a number in order to create more drama/moron fodder.
TXnBud  - common sense   |06-12-2012 11:20:14
This is what you call a common sense article. Who in the world doubted that this
would be the outcome?
Who thought things would be different with Obama?
thought the size of government would decrease with Obama at the helm?
thought government spending would decrease?
Who still thinks this is all Bush's
Americanius  - Obama Deception   |06-12-2012 11:01:48
Didn't Obama say in the same speech that he reduced the size of the federal work
force? Just like he claimed to have reduced government spending? And his claim
that federal drilling is up when it's down by 36%. Except for the drilling us.
Yet blames his failed economic policies on everything from the EU, tsunamis,
states and George Bush? So with Obama the buck gets passed off.
J Wales  - Individual   |06-12-2012 10:53:33
Obama's plan is working: destroy the private sector, create government
dependents that will forever vote Dem to keep their foodstamps and Govt hovel
Anonymous   |06-12-2012 10:51:56
Obama's plan is working: destroy the private sector, create government
dependents that will forever vote Dem to keep their foodstamps and Govt hovel
Scotch62   |06-12-2012 10:49:03
Sorry was trying to reply to forumsforjustice...."Democrats, & Republicans
are at opposite ends of the spectrum; the solution
resides in the middle, with,
we, the people"
BlownfuelCoupe  - Manufacturing   |06-12-2012 10:47:05
This Administration Pro Manufacturing,

Manufacturing Votes.
Scotch62   |06-12-2012 10:46:27
I disagree. The spectrum runs from totalitarianism to individual liberty. The
dems have been overtaken by Marxisits and are c***** to totalitarianism and
headed further in that direction; the reps are marginally c***** to liberty
after being dragged in that direction by patriots who have reawakened to the
power of the constitutional roots of our Founders. Count me in group 2!
Joe Doakes  - I'm in the wrong line of work . . .   |06-12-2012 10:40:05

January 20, 2009

Dear Mr. and Mrs. Yertle AKA President Obama:

I am
concerned that the manner in which the federal government is operating is eerily
like how the Krupps munitions factory was still billing the Nazi’s - after
Hitler committed suicide. Benjamin Franklin once remarked that the definition
of insanity is doing the same thing, and expecting different results. The
congress has passed bailouts, and rescues, and soon a, stimulus package, all in
an empty effort to save the Republic from the financial malfeasance of
governments small and large. If they failed to work in the past what reason do
you believe that they will work in the future? It appears to me that the
solution is obvious. Forgetting financial reality for a moment. In a given
year the US economy generates 10 to 15 trillion dollars. I say why wait for the
year to pass. Next time all of you are at your respective posts pass a bill to
print $12.5...
Juan  - finding a concrete solution   |06-12-2012 10:39:58
Government jobs are by definition not contributors
to the economy.Even as they
are absolutely and essentially needed,
those are considered "consuming
jobs" not revenue generating
jobs.Yeah,we profit from their service as a
society and appreciate
it,especially when we are in a bind,but they consume and
do not
generate. The private sector(even with its faults) provides the
revenue used to pay those salaries. If you borrow(or print money for
matter), how does that makes things better? You get in a deeper
hole,much harder
to get out. That is one of the reasons why you want to
strengthen the private
sector economy,so that then all those other
services can be paid for without
having to over tax, borrow or go into debt for
them. Of course this is a very
simple explanation and there are many
variables etc. to this, but generally
speaking,that should be the way an economy like ours works for all.Mr. Obama
AmericanMan2012   |06-12-2012 10:36:20
Obama is a carnival shill game. Take 3 shills and put an idea, a fact in
shill and move them around, and hope you can't remember what he said, change
the numbers ,unemployment numbers padded, corrected, padded, corrected. Now it's
vacation time, everyone's attention is off politics, so He will load the
sting,and start the allusion .
I pray to God Obama Care is put down, it'll be a
double or nothing, and the right shill picked, We win one!!

ps: moderator!!
a walnut S**** is not a bad word, the bad words are in your suspicion not in my
Glenn  - 2008?   |06-12-2012 10:34:09
Why the analysis beginning in January 2008? President Obama came to office in
January 2009. I didn't vote for the President in 2008, nor will I this year, but
I don't care for criticism which begins with such a flawed analysis. I would be
interested in the corrected figures.
ChocoCatSF   |06-12-2012 10:28:45
From Jan 2008. Obama came to office in Jan 2009. If you are going to offer us
stats, why not offer relevant ones?
AmericanMan2012  - Obama S**** Game   |06-12-2012 10:28:10
Obama is a carnival s**** game. Take 3 s****s and put an idea, a fact in one
s**** and move them around, and hope you can't remember what he said, change the
numbers ,unemployment numbers padded, corrected, padded, corrected.
Now it's
vacation time, everyone's attention is off politics, so He will load the sting,
and start the allusion .
I pray to God Obama Care is put down, it'll be a bet
double or nothing, and the right s**** picked, We win one!!
Gary   |06-12-2012 10:11:30
America has to remove obama from office and then begin cleansing DC. Period.
That person, barry "the fraud" obama, is toxic to America. He is not
American as we know Americans to be. And, he will be given his eviction notice
on 11/6/12 and removed on 1/20/13.
J   |06-12-2012 10:10:11
The idea is Private Jobs, are Jobs.
They are what keep the economy
NotAnEconomist   |06-12-2012 09:57:36
I am not an Economist; not a government employee; not pretending I have the
answer to this issue. Have my own small business hiring 3 full time employees;
was not able to hire more due to insufficient demands to justify hiring more

I'm just a simple man trying to understand this issue and finding a
concrete solution rather than blaming one party or the other. I welcome
suggestions from those that criticizes our present President on how to generate
more jobs in private sectors. I am in the private sector; but, I am not able to
hire more employees due to demands of my company's services. So how do you make
me hire more?
Dan Austin   |06-12-2012 09:40:48
The solution is obvious. EVERYONE should work for the government. That way, we
can pay ourselves our wages by taxing each other, and we can regulate ourselves
into prosperity by making more and more rules that we all have to

This is Obama's dream. How can you NOT vote for the guy?
SharingNews   |06-12-2012 09:29:13
I'm sorry, I cut and paste from a non-updated calculation.

Payroll tax would
rise from 4.2% to 6.26% immediately if the holiday continued, or from 6.2% to
8.26% if the holiday is discontinued.

It still takes 176 people to fund one
SharingNews   |06-12-2012 09:27:14
To conclude, you can think of hiring 800,000 new State Workers
as having your
payroll taxes immediately go from 4.2% to 6.8%, even if the holiday
continued. If it expires, your regular 6.2% would increase to

SharingNews   |06-12-2012 09:23:28
Could you support your family if the your state and local governments hired
800,000 more workers?

That's 16,000 more workers per State. The average state
salary is approximately $49,240 (2009 US Bureau of Labor Statistics).

$49, 240 * 16,000=$787,840,000 ($790M!) a year in taxes that are needed just to

pay for these NEW employees (forget the old ones!).

The average population of
a state is 6,174,911, with only 45.4% of the population
working as of 2010.
That leaves 2,803,409 working adults per State to shoulder
the burden of that
cost, an approximate $281/year for you if you live
in a state slightly more
populous than Missouri (approximate average).

Cali Residents Pay (highest
population): $47/year.
Missouri Residents Pay (median population):
Wyoming Residents Pay (lowest population): $3078/year

Do you have
Does your State have it?
What are these workers doing?
Would they need
wills  - forumsforjustice still blaming bush??   |06-12-2012 09:16:32
Seriously, when does the blame go to the current president? You keep Blaming
Bush....If I didn't think it was so stupid, I'd find it humorous. Get your head
out of your rear and look around. The days of socialism are at a close come
TJ  - Doing Fine?   |06-12-2012 09:13:27
Yes, the Government keeps adding employees for the tax payers to fund. Soon
there will be more Gov. employees than private sector.
Sharpshooter  - Who was in charge?   |06-10-2012 22:05:23
2007? Who was it took control of Congress in January of that year?
forumsforjustice   |06-10-2012 03:41:13
from September 2007 to September 2011, the number of federal employees increased
by 267,885, or 14.4%. While much of this expansion has taken place under
President Obama, it began in the final year of the Bush presidency, with an
increase from September 2007 to September 2008 of 4.1%.
forumsforjustice   |06-10-2012 03:20:48
Historical Federal Workforce Tables; Total Government Employment Since 1962

Employment and Payroll Summary Report
forumsforjustice   |06-10-2012 02:01:43
Democrats, & Republicans are at opposite ends of the spectrum; the solution
resides in the middle, with, we, the people
Brophy Tuesday 19 June 2012 - 09:52 am | | Brophy Blog

No comments

(optional field)
(optional field)
To prevent automated comment spam we require you to answer this silly question.
Remember personal info?
Small print: All html tags except <b> and <i> will be removed from your comment. You can make links by just typing the url or mail-address.