Paul Ryan's Budget Proposal Misleads On Private-Sector Employment

April 05, 2011 2:15 pm ET

Today Rep. Paul Ryan (R-WI) released his 2012 budget proposal entitled "The Path To Prosperity: Restoring America's Promise." Inside the 73-page document Ryan states that private-sector job growth is "sluggish" compared to the "breakneck speeds" of public-sector growth. This is not true: the private sector has added jobs for 13 straight months while public sector-employment has shrunk steadily. Overall, the private sector has added 923,000 jobs since Obama policies began to reach the economy, while the public sector has shed 350,000 jobs.

CLAIM: Paul Ryan Falsely Claims That Private-Sector Employment Is Growing Slowly While "Government Grows At Breakneck Speeds"

The federal government has added 155,000 new workers since the President took office. It is no coincidence that private-sector employment continues to recover only sluggishly while the government grows at breakneck speeds. To fuel the public sector's growth, Washington must either tax the private sector or issue debt (i.e. impose a deferred tax upon the private sector). [GOP.gov, 4/5/11]

FACT: Contrary To Ryan's Claim, Government Employment Has Been Steadily Decreasing While Private Sector Has Grown Steadily Since President Obama's Policies Took Effect

President Obama's Policies Started To Affect The Economy In Mid-2009. According to economist Robert J. Shapiro:

From December 2007 to July 2009 - the last year of the Bush second term and the first six months of the Obama presidency, before his policies could affect the economy - private sector employment crashed from 115,574,000 jobs to 107,778,000 jobs. Employment continued to fall, however, for the next six months, reaching a low of 107,107,000 jobs in December of 2009. So, out of 8,467,000 private sector jobs lost in this dismal cycle, 7,796,000 of those jobs or 92 percent were lost on the Republicans' watch or under the sway of their policies. Some 671,000 additional jobs were lost as the stimulus and other moves by the administration kicked in, but 630,000 jobs then came back in the following six months. The tally, to date: Mr. Obama can be held accountable for the net loss of 41,000 jobs (671,000 - 630,000), while the Republicans should be held responsible for the net losses of 7,796,000 jobs. [Sonecon.com, 8/10/10, emphasis added]

Since Summer 2009, The Private Sector Has Added Jobs While The Public Sector Has Shrunk. Political Correction prepared a chart based on Bureau of Labor Statistics data showing cumulative job gains and losses in the public and private sectors since summer 2009 (click to enlarge):

Since July 2009, The Private Sector Has Gained 923,000 Net Jobs. According to Bureau of Labor Statistics data, there were 107,649,000 private sector jobs in July 2009. As of March 2011, the most recent report available, the data show that total is up to 108,572,000 — a net gain of 923,000 jobs in the private sector. [BLS.gov, accessed 4/5/11]

Private Sector Has Added Jobs For 13 Straight Months. According to the Bureau of Labor Statistics:

[BLS.gov, accessed 4/5/11]

Since July 2009, The Public Sector Has Lost 378,000 Net Jobs. According to Bureau of Labor Statistics data, there were 22,544,000 jobs in the government sector in July 2009. As of March 2011, the most recent report available, the data show 22,166,000 government jobs — a net loss of 378,000. [BLS.gov, accessed 4/5/11]