Are You Looking at the Whole Enchilada? Part 2

Here is another problem that confuses many people. The Obama administration has stated that “In a little bit over a year, we’ve added more than 2 million jobs in the private sector”.

However, this is looking at only one aspect of the problem. They are not taking the entire problem into consideration.

Let us look at the big picture – the whole enchilada.

There is a Bureau of Labor statistic, called JOLTS, which stands for “Job Openings and Labor Turnover Survey.

The report says that employers hired no more workers in March of 2011 than they did in February of 2009 which was the height of the recession. The only difference was the number of job losses which decreased from 4.7 million to 3.8 million.

So, the economy added jobs NOT because of new hiring but because of fewer job layoffs. And this is, primarily, due to the fact that there are fewer individuals left to fire or layoff.

In the beginning of a recession, employers fire and layoff employees in rapid fashion.  Toward the end of a recession, employers slow down the rate of firing and layoffs. Thus, there are fewer job losses; but hiring may not be picking up.

So, the Obama administration can point to jobs being added but this is not due to new hiring, it is due to fewer job losses. Likewise, there are fewer initial claims for unemployment because there are fewer job losses.

The good news is that when layoffs slow down, it may be a sign that we have reached bottom in the economy. The bad news is that the economy may not yet be recovering.

So, let’s look at the big picture, at the whole enchilada when dealing with problems. The politicians, no matter which party, will focus on one tiny aspect of a situation and try to twist it into their favor.

I am becoming less gullible to this.

Read this blog post several times.

I know, I have to read some things at least three times before it sinks in.

But, this is important. And, after someone, anyone, makes a statement, you may benefit by asking, “Is this just one aspect that he or she is focused on or is there more to it? Am I getting the whole enchilada?”