Today’s jobs report, with disappointing job growth and a large drop in the labor force, shows that a robust jobs recovery remains elusive. That situation won’t likely improve in coming months as the sequestration budget cuts begin to slow the economic recovery and make it harder for the unemployed — especially the unprecedented numbers of long-term unemployed (see chart) — to find a job. Adding insult to injury, sequestration also cuts federal unemployment insurance (UI) benefits for the long-term unemployed.
Below are some charts to show how the new figures look in historical context. See my full statement with further analysis.