Friday, August 06, 2010

How Now

Summers on April 4:

TAPPER: Now, if you remove the temporary census worker jobs, 48,000, you're left with 114,000 new jobs. Big businesses have retained earnings. They are not spending that -- that money on creating new jobs. They're investing abroad. They're buying their own stock. They're buying other companies. Why are they not creating new jobs?

SUMMERS: They're starting to. We're in a very different place than we were a year ago. A year ago, we were losing 600,000 jobs a month. Now the process of job creation has started. We expect that it will accelerate.


You know, the -- the good news is that, if you look at what's happened in the first quarter of this year, it's hardly satisfactory, but it is running somewhat ahead of what the administration was forecasting, because our forecasts were conservative. And I'd expect continued progress in job creation.

As you see progress in job creation, you tend to see unemployment go down. It's not quite as simple as some people think, Jake, because as conditions get better, more people decide to look for work and are counted as in the labor force. So sometimes it's frustrating and the progress doesn't show up immediately in the unemployment rate, but it's progress nonetheless in giving jobs to people who need them.

Labor force participation rate has fallen for the past 3 months.