White House blames rising unemployment rate on federal workers
The White House highlighted the addition of 64,000 jobs in November, as reported by the Bureau of Labor Statistics, while attributing the rise in the unemployment rate too federal workers leaving their positions due to a buyout program. The November unemployment rate increased to 4.6%,the highest in four years,partially influenced by about 250,000 federal employees who accepted buyouts adn are now actively seeking new jobs. Kevin Hassett, director of the National Economic Council, emphasized that despite the rise in unemployment, labor force participation also increased, reflecting these workers’ continued job search efforts. Hassett defended the accuracy of the data amid concerns following the government shutdown and changes at the Bureau of Labor Statistics. He also noted that the administration reduced the federal workforce and added 700,000 private-sector jobs this year, contributing to lower deficits and a stronger long-term economic outlook.Simultaneously occurring, the administration continues to focus on addressing economic concerns ahead of upcoming elections.
White House blames rising unemployment on federal workers, touts November jobs report gains
President Donald Trump‘s administration touted the economy‘s addition of 64,000 jobs in November and blamed the uptick in unemployment on federal workers.
The unemployment rate rose to 4.6%, according to the Bureau of Labor Statistics, which published the delayed November jobs report on Tuesday after the 43-day government shutdown. This marks the highest unemployment rate in four years.
Kevin Hassett, director of the National Economic Council, attributed the rise to federal workers who have left as part of the deferred resignation program that the White House strongly pushed this year.
“The other thing that rose was labor force participation, and I think that right now for those two things to happen, probably what’s going on is the 250,000 federal government workers who took the buyout are staying in the labor force and looking for work,” Hassett said at the White House Tuesday. “We saw a big reduction, about 250,000, in federal employment. We saw an uptick in the unemployment rate, but we also saw a uptick a few months in a row of labor force participation. So, I think those government workers are out there looking for jobs.”
ECONOMY ADDED 64,000 JOBS IN NOVEMBER: THE KEY FACTS AND FIGURES
But Hassett also claimed he wanted the unemployment rate to decrease, as analysts worry the labor market is still weak. Due to the government shutdown delay, the bureau did not release the unemployment rate for October, but a net loss of 105,000 jobs was shed that same month, including 162,000 federal workers.
He also called for a commissioner of the Bureau of Labor Statistics who “revisits how the data are calculated.” There has been some worry that Trump’s firing of former Bureau of Labor Statistics Commissioner Erika McEntarfer due to a weak jobs report in August, in addition to the government shutdown delaying the jobs report, could make the November data not nearly as accurate.
“I think that surveys were done according to their normal procedures,” Hassett said, defending the administration.
Hassett also claimed the administration added 700,000 private-sector jobs this year and shrank the federal workforce, “which is part of the strategy that the president has to reduce the runaway deficit.”
“And so, the deficit this year, it’s looking like it’s going to be $600 billion lower than it was last year,” he added. “Which would give you about $7 trillion, $8 trillion in savings over a 10-year period if it were to stay like that. And so, that’s really, really good for the long-run health of the economy. And the job number has stayed strong even though we’re being really fiscally tight by reducing the deficit so much.”
The president has not yet commented on the jobs report on Tuesday, but Vice President JD Vance will speak in Pennsylvania about affordability issues as the administration hopes to stave off serious losses during next year’s midterm elections.
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