news release
from
BARNEY
FRANK
October 6, 2006
FOR IMMEDIATE RELEASE
CONTACT: Peter Kovar 202.225.9400
CONGRESSMAN BARNEY FRANK'S STATEMENT ON THE
DISAPPOINTING SEPTEMBER JOB NUMBERS
Today’s announcement that only 51,000 new jobs were created
in September is extremely disappointing by any measure, whether it’s
compared to the Bush administration’s own projections or to growth rates
during the 1990s. The failure of the economy during the Bush years to
create jobs has led to a labor market in which, five years after the 2001
recession, the vast majority of American workers have failed to see real
wage gains. Nominal wage growth of 4% for 2006 is barely above the
inflation rate and continues to lag productivity growth by a large margin.
“The only piece of
apparent good news today, a lower unemployment rate, in reality only points
to an increasing number of discouraged workers who have dropped out of the
job market altogether in the face of declining wages and few job
opportunities. This is evidenced by the historically low percentage of
Americans participating in the workforce today. We may now be seeing a
vicious cycle in which low wages and a lack of job creation is driving
discouraged workers out of the labor market, which in turn eases any
pressure on employers to raise wages.
“It’s particularly
disturbing that today’s employment and earnings numbers come as economists
have been predicting slower overall economic growth in the months ahead. We
have heard repeatedly from the Bush administration that wage growth would
eventually improve under conditions of sustained economic growth - it was
simply a matter of waiting for wages to “catch up” to GDP growth.
Unfortunately, wages may catch up to GDP but only as a result of GDP slowing
to the anemic pace of wage growth.
“It’s clear that the
benefits of economic growth during the Bush years have accrued to a very
small number of the wealthiest Americans, while the vast majority of
America’s workers have failed to see any real economic gains. The
Administration’s repeated claims that substantial real wage growth is just
around the corner are becoming less and less credible, something that the
staff of the House Financial Services Committee has documented in the
attached fact sheet, ‘Bush Administration Adopts a No Tipping Policy’.”
Bush
Administration Adopts a “No Tipping” Policy
Report of the House Financial Services Committee Democratic Staff
(10/6/2006)
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