American employers added 157,000 jobs in January compared with (revised) 196,000 jobs in December. The number of unemployed, 12.3 million, is little changed while the unemployment rate edged upward from 7.8 to 7.9%. The disappointing increase in numbers of new jobs was generally attributed to the loss of public sector jobs at the state level, a large proportion of jobs lost being public school teachers. This is the direct result of state budget deficits, which were hit by a double whammy. The first was loss of tax income due to the economic downturn, the second the loss of federal funds due the austerity economics and “fiscal cliff” panic ruling national politics.

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This time last year, when the Bureau of Labor Statistics released the last of the 2011 jobs report, CPEG warned that the slight improvement in December 2011 was still so inadequate that it would take six years to reach 2007 levels of employment. Now the BLS has released numbers for December 2012, and we have a sense of déjà vu as we note that the average monthly employment growth in 2012 is the same as that in 2011—about 153,000 per month. December’s employment growth missed expectations—ADP’s showed 215,000 new jobs in December. The economy added 155,000 jobs, leaving the unemployment rate unmoved since September at 7.8%. One year later, we are now five years away, if we continue at this rate of reducing unemployment, from pre-recession level of unemployment.

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