Heritage Employment Report: Dog Days of August Howl in the Labor Market
The August report shows that the labor market is continuing its non-recovery. Average job growth for 2012 is worse than average job growth in 2011. The labor market should simply be stronger at this point in the recovery than it is right now. Instead, several indicators are not recovering at all or even continuing to decline. Fiscal policies from Washington have made the situation worse. While President Obama has promised to reduce regulations, which would help job creation, his largest initiative—Obamacare—will harm employment. The Obamacare tax hikes coincide with the expiration of the 2001 and 2003 tax cuts in January 2013. This will throw the economy into another deep recession, and businesses are already delaying investment and hiring as a result.