After monthly jobs report comes spin

WASHINGTON, D.C. - U.S. House Majority Leader John Boehner (R-OH) highlighted the latest job gains announced this morning by the U.S. Department of Labor (DOL). Approximately 113,000 jobs were created in July, for a total of more than 5.5 million new jobs since August 2003. Boehner issued the following statement:

"Today's job gains prove our growing economy continues to provide more economic opportunity and higher wage jobs to working families across the country. While our economy remains strong, too many American families continue to feel anxiety about the high cost of living.

Washington, D.C. – The unemployment rate rose to 4.8 percent in July, and only 113,000 total payroll jobs were created, the Bureau of Labor Statistics reported today. Non-government jobs grew by 113,000.

“Payrolls are not expanding at a very strong pace and there is increasing concern that slower economic growth will dampen job creation even more,” said Sen. Jack Reed (D-RI), Ranking Democrat on the Joint Economic Committee (JEC). “As Treasury Secretary Paulson recently acknowledged, many Americans have not benefited from the economic gains we’ve seen so far in this recovery. Workers’ wages are not keeping pace with soaring energy prices and rising health care costs, and now their jobs may be at risk as well. It’s time for the President to address the real economic challenges facing American families.”

Growth in payroll employment – already modest by the standards of past economic recoveries – was just 112,000 jobs per month in the past four months. The 5.6 million jobs created since job losses peaked in August 2003 works out to only about 159,000 per month, when growth of 200,000 jobs per month or more was typical in past recoveries. July’s 4.8 percent unemployment rate remains higher than the 4 percent rate achieved in the expansion of the 1990s.

Many labor market indicators remain weaker than they were at the start of the 2001 recession. The labor force participation rate is 1.0 percentage point lower than it was at the start of the recession and the fraction of the working-age population with a job is 1.3 percentage points lower. Long-term unemployment also persists. Nearly one in every five unemployed people – 1.3 million Americans – have been jobless for more than 26 weeks, the maximum number of weeks for receiving regular unemployment insurance benefits.

Higher prices for gasoline and medical care are squeezing the take home pay of workers. Average hourly earnings rose 0.4 percent again in July. After adjusting for inflation, however, average hourly earnings remain lower than they were three years ago.

Office of the Press Secretary

(Crawford, Texas)

________________________________________________________________

For Immediate Release August 4, 2006

Job Creation Continues – More Than 5.5 Million Jobs Created Since August 2003

Today, The Government Released New Jobs Figures – 113,000 Jobs Created In July. The economy has created more than 1.7 million jobs over the past 12 months – and more than 5.5 million jobs since August 2003. The unemployment rate is 4.8 percent – below the average of each of the past three decades. In addition, wages grew 0.4 percent in July, the second consecutive month of strong wage growth and faster than inflation.

The Economy Remains Strong, And The Outlook Is Favorable

Ø Employment Increased In 47 States Over The Past 12 Months Ending In June.

Ø Real GDP Grew A Strong 3.5 Percent Over The Past 4 Quarters.

Ø Productivity Has Grown At A Strong 3.5 Percent Annual Rate Since The First Quarter Of 2001. Productivity growth during the past five years has been at the fastest rate in nearly four decades.

Ø Real After-Tax Income Has Risen By 13.5 Percent Since January 2001.

Ø Industrial Production Increased 4.5 Percent Over The Past 12 Months.

Ø Manufacturing Production Has Risen 5.7 Percent Over The Past 12 Months. Manufacturing productivity has grown 4 percent over the past four quarters, faster than the 3.7 percent average growth in the 1990s.

Ø Strong Growth Is Helping Raise More Tax Revenues For The Federal And State Governments. In 2005, Federal tax revenues grew by $274 billion, the largest increase in 24 years, and State tax revenues are up substantially in 2006.

President Bush Has An Aggressive Agenda To Create Jobs And Keep The Economy Growing

President Bush Has Called On Congress To Make His Tax Relief Permanent. The economy grows when Americans have more of their own money in their pockets to save, spend, or invest. The President worked with Congress to double the child tax credit, reduce the marriage penalty, cut taxes on capital gains and dividends, create new incentives for small businesses to invest, and reduce income taxes for every American who pays them.

The President Is Calling On The Senate To Quickly Pass The Line-Item Veto, So He Can Sign It Into Law. The line-item veto would make it easier for the legislative and executive branches to work together to ensure fiscal responsibility. Under the line-item veto passed by the House, a President could approve spending that is necessary, redline spending that is unnecessary, and send the wasteful spending back to Congress for a prompt up-or-down vote.

President Bush Is Working With Congress To Control Runaway Entitlement Spending. In February, President Bush signed the Deficit Reduction Act into law, saving our Nation almost $40 billion over the next five years. In addition, the President's FY07 Budget proposes to slow the growth of entitlement programs, including Medicare, by $65 billion over five years. The President will continue to work with Congress on entitlement reform, including reforming Social Security.

The President's American Competitiveness Initiative (ACI) Will Keep America The Most Innovative And Competitive Economy In The World. The ACI will encourage more aggressive investment by businesses in research and development, increase Federal support for vital basic research, and improve math and science education for America's students.

The President Is Committed To Opening Markets Around The World And Expanding Opportunities For America's Farmers, Ranchers, Workers, And Businesses. Since 2001, the U.S. Congress has approved free trade agreements (FTAs) with 12 countries. Export growth to trade partners with FTAs implemented between 2001 and 2005 is twice as fast as U.S. export growth to the world. More trade leads to more jobs for workers, more income for businesses, more choices for consumers, and more tax revenue for State and local governments.

As We Work To Open Markets To American Goods, We Must Ensure That America Remains An Open Society To New Immigrants Who Add To Our Economy And Prosperity. The President urges Congress to pass comprehensive immigration reform that will secure our borders, enhance worksite enforcement, create a temporary worker program, resolve the status of illegal immigrants already here, and promote assimilation into the American culture, including learning English.

WASHINGTON, D.C. — U.S. Senate Majority Leader Bill Frist, M.D. (R–Tenn.) today made the following statement after the Department of Labor announced the latest jobs report for the month of July:

WASHINGTON, DC – House Democratic Whip Steny H. Hoyer (MD) released the following statement this morning following the news that only 113,000 jobs were added to the economy in July:

“While any job growth is welcome, the economy needs 150,000 jobs just to break even with the new workers entering the market, so it is disappointing that the Republican economy only added 113,000 jobs in July. But it comes as no surprise.

“While President Bush and Republicans try to put on a positive face, they can’t hide the fact that wages are stagnant, job growth has been insufficient, and the costs of gas, health care, and college tuition continue to skyrocket. Congressional Republicans and the Bush Administration keep saying that the economy is doing very well, but that does nothing more than show how out of touch they are.

“In addition to supporting a fair increase in the minimum wage, Democrats have plans to make health care more affordable, cut college costs, and make America energy independent. When it comes to the economy, Republicans have tried, and they have failed. It’s time for a new direction.”