For those hoping for good economic news out of Washington today, they’re in for a terrible disappointment. According to the latest jobs report from the Department of Labor, the economy created only 69,000 jobs in May — well below expectations — while the unemployment rate rose to 8.2 percent, and job numbers from March and April were revised significantly downward. Meanwhile, Taxmageddon is threatening the U.S. economy and holding back growth, but strangely, President Barack Obama isn’t doing anything about it.
Heritage’s J.D. Foster explains that while a second recession isn’t necessarily on the horizon, the news is nothing for the Obama Administration to brag about:
These jobs figures are consistent with other fairly bleak news. For example, first quarter economic growth was revised down to 1.9 percent, while an important measure of performance in the heartland, the Chicago Purchasing Managers’ Index, fell to its lowest level since September 2009 which was near the bottom of the recent recession. None of this necessarily points to a second recession, more like continued muddling and hardly in a position to withstand an economic shock such as, for example, the developing deep recession in Europe.