BLS October Jobs Report: The Shocking Truth I Found About Sequestration

BLS October Jobs Report: The Shocking Truth I Found About Sequestration


As a business owner, I track job numbers and other economic reports in order to determine where the economy is headed, and one of the most important tools in helping me do this is the monthly jobs report. The report comes out the first Friday of every month, although the October 2013 report was delayed one week due to the government shutdown, and came out Friday, November 8. And while I was upbeat about this morning's report, which shows America added 204,000 jobs in October 2013, I made some startling discoveries about sequestration while doing my research. Sequestration is killing jobs and the economic deck has been stacked to cause the biggest job losses right before the November 2014 elections.

According to the Congressional Budget Office, sequestration will kill up to about 1.6 million jobs between now and 2014. Cancelling sequestration now would add a large quantity of jobs back into the economy — between 300,000 and 1.6 million, with the most likely amount being roughly 900,000 jobs added back, according to the CBO Report.

My initial impression was that those job losses would be spread out over 12 months or more, which would lead to a loss of roughly 133,000 jobs per month. But as I dug deeper in the CBO report I found this excerpt on the true impact of cancelling sequestration:

"Those changes would increase the level of real (inflation-adjusted) gross domestic product (GDP) by 0.7 percent and increase the level of employment by 0.9 million in the third quarter of calendar year 2014 (the end of fiscal year 2014) relative to the levels projected under current law, CBO estimates."  

That can be a bit complicated, so I will draw that statement out. By the "third quarter of 2014," the report means July, August, and September. The report claims that by cancelling sequestration, in that quarter alone the economy would add 900,000 jobs, or 300,000 per month. And here's the kicker — Election Day is November 4, 2014.

The bottom line is that in the months leading up to the 2014 elections, government spending will be slashed the most, causing the worst impacts of these spending cuts. This could be enough of a hit to trigger a recession right before the elections.

I was curious to see if anyone was doing anything about this, and I did a little hunting. It turns out that Rep. Chris Van Hollen (D-Md.) put a bill on the table to end the sequestration cuts. It is called HR. 2060: Stop the Sequester Job Loss Now Act Through 2014. You can review it online and see if you prefer this bill to losing up to 1.6 million jobs this year.

In conclusion, what began as a review of a jobs report showing a surprise gain of 204,000 jobs revealed that sequestration has stacked the deck and will tank the economy and job growth right before the elections. Do we keep this policy, which is the current Republican Party line? Or do we choose the party that's doing everything it can to create jobs? What amounts to good governance and the best benefit for the American people? The answer is clear to me.

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Benjamin Feinblum

Serial-Entrepreneur CEO Biz Owner. Follow @JoinTeamAmerica a bipartisan team producing ideas to improve America and government policy. I am vehemently against those who work to score political points rather than provide solutions. I fight to point out when bias and misinformation are being put forwards. I believe our Democracy is a gift, it needs to be cherished, and honored by having well thought out debate, with primary source data to back up statements. Especially, while we are holding up Democracy as the example to the world. I am an independent who will appear partisan, but only when challenging those who are working to score political points rather than working to find solutions to build success in America. Bottom line: Policies need input from each perspective. Real problems need to be addressed in ways that actually get the job done. Policies should find the line between maximum individual responsibility and minimum input of government resources; that will actually get the job done. All government programs have major problems and must be put into a rigorous and constant state of improvement. While they all have major problems, the US military is the strongest in the history of the world, NASA has had the greatest exploration achievements off planet Earth in the history of mankind, and somehow America is the number one economy in the world. I believe the most important organization to support and put energy into today is www.nolabels.org

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