The economy added 165,000 jobs in April, bringing the unemployment rate down slightly, to 7.5 percent. This is welcome news, together with upward revisions to prior months’ jobs figures. But overall, the nation’s economic recovery remains lackluster – almost four full years after the “official” end of the recession. By any measure, the shortage of jobs is the real deficit crisis for this economy.

Beneath the headlines, there are several troubling indicators in today’s report.  Hours worked per worker actually fell; involuntary part-time work increased; and the unemployment rate for teenagers is stalled at 24.1 percent. Youth unemployment rates would be even higher, were it not for the dramatic drop in the labor force participation numbers for young people, meaning that many are not counted as unemployed.

Our economy is struggling to achieve the economic velocity necessary for full recovery. The blame for this falls largely on Republicans in Congress. For years, they have pushed austerity policies that have turned stimulus tailwinds into austerity headwinds. It is this misguided policy direction that distinguishes this weak and slow recovery from past economic cycles. 

Austerity policies are failing around the world, and have now also been discredited among policy analysts. The main research cited to support these policies -- by Professors Reinhart and Rogoff  -- contained significant errors in calculation and design, and no longer supports the strong policy recommendations initially claimed.  

It is time for leaders in Washington to take immediate action to reverse these disastrous policies. That starts, first and foremost, with repealing the harmful and unnecessary “sequester.” Misguided austerity has hurt our economy, kept unemployment high, and undermined wages, and we urgently need to change course. But the price for correcting this mistake should not be cutting Social Security, Medicare or Medicaid benefits, or other harmful cuts that would further damage the economy. Working people were not responsible for this mistaken policy, and they should not have to pay the price. We need more economic security, not less. We need to invest in good jobs and our future – not slash essential social programs and investments.

Contact: Josh Goldstein (202) 637-5018