Thomas Perez: Obama administration understating unemployment rate
The Obama administration often touts slow-but-steady job growth and a declining unemployment rate that shrunk to 7.6 percent in March as proof the nation has moved beyond the recession and is headed in the right direction.
Testifying before the Senate Health, Education, Labor and Pensions Committee, Mr. Perez said a more accurate assessment of the job market would consider the unemployed who have stopped looking for jobs and those who have settled for part-time work.
With those factors added in, the Bureau of Labor Statistics found the jobless rate nearly doubles to 13.8 percent.
“In that sense, it understates the unemployment rate,” Mr. Perez, 51, said at the hearing.
The exchange came as Mr. Perez faced some pointed questions from panel Republicans, who have already expressed concerns about Mr. Perez’s record as head of the Justice Department's Civil Rights Division.
On Sunday, the Republican lawmakers released a 63-page report accusing Mr. Perez of overstepping his authority at the Justice Department. They raised questions about his role in persuading the city of St. Paul, Minn., to withdraw a housing discrimination lawsuit last year that was headed to the Supreme Court.
Critics contend that Mr. Perez said the Justice Department would stay out of two whistleblower cases against St. Paul, which potentially could cost taxpayers as much as $200 million, if the city dropped the lawsuit.
GOP lawmakers called the quid pro quo a misuse of power.
“That seems to me to be an extraordinary amount of wheeling and dealing,” said Sen. Lamar Alexander, the ranking member from Tennessee. “It seems to me you’re manipulating the legal process.”
But Senate Democrats defended his role in the St. Paul case.
“I think the evidence clearly shows that you acted ethically and appropriately at all times,” Sen. Tom Harkin, Iowa Democrat, said at the hearing.
Republicans are also upset about leniency he gave the New Black Panther Party in a voter intimidation case, among other things.
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