Austan Goolsbee: Don't Worry About Recent Lack Of Job Creation

Although the U.S. private sector added only around 54,000 jobs in May, Austan Goolsbee, chairman of Obama's Council of Economic Advisers, still says the recovery is headed in the right direction.

"Don't bank too much of any one month's jobs report," Goolsbee told Christian Amanpour on her Sunday program The Week. "You want to look at a little bit of a trend to get a more accurate barometer."

Government stimulus might have been essential to preventing the country from sinking into another Great Depression, Goolsbee says, but it's the private sector that must pull the country up. "Our effort now as a government should be to get the private sector, to help them stand up, lead the recovery," he said. "Government is not the central driver of recovery."

To accomplish self-sustaining, private sector growth, Goolsbee explained how recently initiated payroll and business tax breaks will encourage individuals to spend and private industry to hire. "We've got to rely on government policies that are trying to leverage the private sector, and give incentives to the private sector, to be doing the growth."

Despite last month's dismal jobs growth, Goolsbee says to look at larger trends, where optimism appears more warranted. "We were losing 780,000 jobs a month when the President comes into office. Fast forward to now, we've added 1 million jobs over the last six months."

This year's total job numbers appear to support Goolsbee's argument. The employment trends for 2011 through the month of May are actually better than that of last year's at the same time period, says blog Calculated Risk. By this time last year, only 358,000 jobs had been added to the private sector; this year, 908,000 jobs have been added by the private sector.

Comments

[VA RT]

10:32 PM on 06/07/2011

"Government is not the central driver of recovery." It looks like Obama is taking somebody's advice. This supply-side stuff doesn't work, and Obama should know that by now.

[sidnee]

09:43 PM on 06/07/2011

This argument of "the private sector needs to drive this recovery" is tiresome. The govt. cannot force the private sector to do squat. Small businesses won't hire because their business isn't picking up--because people aren't spending because they are afraid they might lose their jobs. Corporations aren't hiring because they are enjoying HUGE profits and have no desire to invest in expanding their workforce. How's the govt. going to "make" businesses step up? They can't. So whose the hirer of last resort? The govt. Spurring infrastructure upgrades and putting poeple to work--will help people get more stable--thusly they will spend more and it trickles down that way. The private sector isn't going to do anything to help the unemployment rate go down. Not until they are sure that people are going to spend. And people aren't going to spend when they aren't sure their jobs will still be there. Quite the quandry.

[exclintonsupporter]

09:33 PM on 06/07/2011

He wasn't trying to say that we should not be concerned...but we should not take the slow growth to mean that we are not growing...we are...but it is slow....slower than anticipated...but there are just so many things that even the Adminsitration can not forsee or control...it is going to be like this for a while...and it will be like this no matter who is in office...but if the GOP get control, it is going to be worst...you can count on it...

[tster1965]

11:13 PM on 06/07/2011

fanned

[LivingDebtFree]

05:48 PM on 06/07/2011

"Pay no attention to that man behind the curtain"...

[OliverTwist]

05:44 PM on 06/07/2011

Will somebody please fire this guy and give him a damning reference.

[bg66astoria]

04:17 PM on 06/07/2011

If he wants any credibility after he leaves his post, he'll stop singing Obama's tune VERY QUICKLY!

[Unscrupulous]

04:01 PM on 06/07/2011

"Government is not the central driver of recovery."

No wonder he got fired (my assumption, yes). This is exactly the opposite of what BO likes to hear.

[Aikaterina]

12:43 PM on 06/07/2011

I'm glad for Goolsbee, that he has a cushy government job, and tenure as a professor. He's raking in a high salary, and will have secure-guaranteed life-time benefits.

There are millions of Americans (20% or more), who've either lost or fear losing their jobs, benefits, homes and life-savings. Far too many people have been out-of-work for years (2-3 at least), have no healthcare coverage or source of income (unemployment goes after 99 weeks).

While the government rushed to bail-out, save and ensure profits for the financial services industry (Wall St. firms, insurers and banks), who created this mess, without precondition, scrutiny or accountability, via TARP, 0-interest FED loans, guarantees against future losses, most of the general public lost their net worth: home prices plummetting, retirement accounts dimished, low interest-dividends earnings, etc.

Even those who still have jobs, viable businesses and benefits are leery of their future, and most fear they won't be able to provide for their families with stagnant wages, increased payroll deductions for healthcare and pension benefits, along with inflation (soaring gas, utility and food costs).

Unless and until the government gets serious about addressing the economic circumstances of working-middle class Americans, enacting policies that will create jobs, investing in education (a key factor for our economic future), and stop coddling the corporate miscreants, there will be immense dissatisfaction and distrust amongst the public.

[Izzymeister]

12:31 PM on 06/07/2011

You trolls are sounding so depressed. The economy is growing and you find fault in that.
You and the GOP want the country to fall off a cliff so you can get your side back in power.

But you insist on letting everyone know how much you hate women, gays, seniors, immigrants, education, unions, veterans, disaster victims and several other groups.

That will not work very well for you. Even your GOD, Rush has lost 30% of his listeners.

I suggest you try to live with it. Life is short.

[LivingDebtFree]

05:49 PM on 06/07/2011

Wow, I think you can stuff a few more stereotypes in there.

[exclintonsupporter]

09:35 PM on 06/07/2011

but what he says is the truth!!!

[joe kim]

11:51 AM on 06/07/2011

Well, you say things like this on Sunday and you get the boot on Monday.

You can lie to the people most of the time, but when piss off the 20% of the population out of work, you may lose your job.

Couldn't have happened to a nicer guy.

You think we're on the right track still?

Do you think "the United States will never embrace austerity" still?

Karma would dictate you lose your job with no hope for any kind of job and people around you tell you that things are just great.

[guveqzero]

10:16 AM on 06/07/2011

What an idiot. Millions of people out of work for years, and he says don't worry. What a disgrace. Well if you have a job, you don't need to worry. If you don't, well that's a different story. We need to put this guy out of work for two years and see what he says then.

[tosc]

10:16 AM on 06/07/2011

he is a rep. from the government and is telling us that the gov. does not see themselves as the primary employment generator? appears to be the ole "pass the buck" excuse going on here.....?

[Faux Really]

11:31 AM on 06/07/2011

Why would the govt be a primary employment generator? Besides the politicians on both sides saying this and that about job creation. Why?

Although I disagree with the recessionary decisions that have been made, the only logical thing the govt could do was mess with stimulus/tax items, if anything. Typical though, just throw money at it and it will go away political solution.

What we should really be upset about is the lack of prosecution against the companies that played (and lost) roulette with our economy to make a buck. No country is morally perfect, but we have really reached a new low here.

[sandiegoconservative]

01:02 AM on 06/07/2011

He is not worried because the lemming libs will come out to vote for Obama, regardless of what happens to the economy and jobs.

[jdevans]

10:09 AM on 06/07/2011

Maybe if the GOP actually created jobs, instead of just talking about it, people would vote for them.

[Hpotterfan77]

12:46 PM on 06/07/2011

You are so right. F & F'd. Notice how this man is now "leaving" his post...lol. More like got the boot.

[tster1965]

11:15 PM on 06/07/2011

Awesome...fanned!

[MarkVA71]

04:24 PM on 06/07/2011

Got any ideas other than name calling?

[xilduq]

10:39 PM on 06/06/2011

Austin, we have a problem.

[Faux Really]

11:14 AM on 06/07/2011

Austan? Austan, Massachusetts?

[Peanut Santiago]

10:04 PM on 06/06/2011

Don't worry about it? (lack of job creation)

Yea riiiiight.

That is okay if you have a job, especially a good paying job.

The rest of us will worry AND think you are a paid political shill who spouts ridiculous sound bites.

[dcflush]

11:56 AM on 06/07/2011

908,000 jobs created this year

[Trojan505]

07:16 PM on 06/07/2011

That pay, what, $7.50 an hour.

When you put on the silly hat and ask, "would you like fries with that?" for a living, then you can brag about the numbers.