The government has not gotten bigger under Obama (Jobs report edition)

by pdxblake

From Markit (ht FT Alphaville):

Private sector employment rose by just 172 ,000, its largest monthly increase since February, while government payrolls shrank by 9,000.  Private sector employment is now at its highest since December 2008 whereas the government workforce has dropped to its lowest since July 2006

Another point to mention here would be that the false controversy about the ‘private sector is doing fine’ comment again is true.  Obama’s point, which was twisted in the subsequent analysis, is that the private sector is not what is pulling the economy down.  It’s not growing rapidly enough, but the bigger drag on the labor markets are continued shrinkage in public sector employments.

So, not only are the rumors that the government is getting much bigger under Obama completely baseless, growing government employment  could benefit the private sector by supporting (rather than detracting from) overall demand.

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