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The Real Unemployment Numbers Are Worse Than You Are Being Told
TEC ^ | 9-9-2012 | Michael Snyder

Posted on 09/09/2012 3:13:36 PM PDT by blam

The Real Unemployment Numbers Are Worse Than You Are Being Told

Michael Snyder
September 9, 2012

According to the Obama administration, the unemployment rate in the United States has been slowly coming down over the past couple of years. But is that actually true? When you take a closer look at the data you quickly realize that the real unemployment numbers are much worse than we are being told. For example, if the labor force participation rate was the same today as it was back when Barack Obama first took office, the unemployment rate in the United States would be a whopping 11.2 percent. But every month the Obama administration has been able to show "progress" because of the fiction that hundreds of thousands of Americans are "disappearing" from the labor force each month.
Frankly, the way that they come up with these numbers is an insult to our intelligence. Personally, I much prefer the employment-population ratio. It is a measure of the percentage of working age Americans that actually have jobs. I like to call it "the employment rate". So what happened to the "employment rate" in August? It fell slightly to 58.3 percent. It is lower than it was when the last recession supposedly ended, and it is almost as low as it has been at any point since the very beginning of this crisis. A few times during this economic downturn it has actually hit 58.2 percent. Needless to say, things are not getting any better. So why aren't the American people being told the truth?

After every other recession in the post-World War II era, the employment rate has always rebounded.

But not this time.

Does this look like a recovery to you?....

P?

So how in the world can Barack Obama claim that we are better off now?

In August 2010, 58.5 percent of working age Americans had jobs.

In August 2012, 58.3 percent of working age Americans had jobs.

So where is the recovery?

It is two years later and a smaller percentage of Americans are employed.

It is very frustrating to me that we are not being told the truth about the unemployment numbers. The following are some more indications that the real unemployment numbers are much worse than we are being told....

-In July, 142,220,000 Americans were working. In August, only 142,101,000 Americans were working. So the number of Americans working fell by 119,000 and yet the government would have us believe that the unemployment rate actually declined from 8.3 percent to 8.1 percent.

-According to the federal government, 96,000 jobs were added to the economy in August and the U.S. labor force shrank by 368,000 even though our population is continually growing. If the size of the U.S. labor force had stayed the same, the official unemployment rate would have actually gone up to 8.4 percent.

-Almost all of the new jobs added in August were the result of the "birth-death" model used by the Labor Department to estimate jobs added by new businesses. That model has been heavily criticized for being inaccurate. If you take the 87,000 jobs added by that model out of the equation, then the U.S. economy only added 9,000 jobs in August. But it takes somewhere around 125,000 new jobs each month just to keep up with the growth of the population.

-If the labor participation rate was sitting where it was when Barack Obama first took office, the unemployment rate in the United States would actually be 11.2 percent.

-If the labor participation rate was sitting at the 30 year average of 65.8 percent, the unemployment rate in the United States would actually be 11.7 percent.

-John Williams of Shadow Government Statistics would put the "real" rate of unemployment up around 23 percent after adding in all workers that have given up looking for work and all underemployed workers.

-The labor participation rate for men has fallen to 69.9 percent. This is the lowest level that it has been since the U.S. government began tracking this statistic back in 1948.

-There was more bad news for manufacturing in this latest report. During the month of August the U.S. manufacturing sector lost approximately 15,000 jobs.

-The official unemployment rate has now been above 8 percent for 43 months in a row.

-The percentage of working age Americans with a job has been below 59 percent for 36 months in a row.

-The employment numbers for both June and July were revised downward significantly. For June, it turns out that only 45,000 jobs were added to the economy as opposed to the 64,000 that were originally reported. For July, it turns out that only 141,000 jobs were added to the economy as opposed to the 163,000 that were originally reported.

-Incredibly, 58 percent of the jobs created since the end of the last recession have been low income jobs.

-The U.S. economy currently has 4.7 million less jobs than it did when the last recession started.

So what is the solution to these problems?

The media is breathlessly proclaiming that more quantitative easing is on the way and that the Federal Reserve will save the economy and send the stock market soaring to new heights.

A headline on CNBC on Friday boldly declared the following: "Market Sees 'Helicopter Ben' Coming to the Rescue".

You can almost hear the chopper blades whirling now.

Apparently Bernanke has had a love of showering the economy with money for a very long time. For example, you can see a picture of a young Ben Bernanke in action right here.

Of course that is a joke, but you get the point.

In recent years Federal Reserve Chairman Ben Bernanke and the rest of his cohorts have printed money like there is no tomorrow.

So have the previous rounds of quantitative easing solved our problems?

Of course not.

The employment rate is even lower today than it was two years ago.

But all of that money printing has sent the stock market soaring and it has enabled the big Wall Street banks to make an obscene amount of money.

The truth is that the Federal Reserve, the Obama administration and the big Wall Street banks don't really care about you.

They don't really care that the middle class is rapidly shrinking and that the number of Americans on food stamps has risen by more than 14 million since Barack Obama became president.

What they care about is what is good for them.

As I have written about previously, if we continue on the same path that we have been on for the past several decades, there will never be enough jobs in America ever again.

On our current trajectory, we will end up just like Greece where the unemployment rate is now up to 24.4 percent.

Once upon a time the economy of Greece was thriving.

But today, many formerly middle class Greek citizens are leaving Greece and are picking up whatever work they can find....

As a pharmaceutical salesman in Greece for 17 years, Tilemachos Karachalios wore a suit, drove a company car and had an expense account. He now mops schools in Sweden, forced from his home by Greece’s economic crisis.

“It was a very good job,” said Karachalios, 40, of his former life. “Now I clean Swedish s---.”

Karachalios, who left behind his 6-year-old daughter to be raised by his parents, is one of thousands fleeing Greece’s record 24 percent unemployment and austerity measures that threaten to undermine growth. Would you be willing to do that?

Don't laugh.

Someday when the unemployment rate in the United States gets that high we will see large numbers of desperate Americans leaving this country in search of work somewhere else.

Already, an increasing number of Americans are buying expired food at auctions.

Times are hard and people are trying to get by any way that they can.

More than 100 million Americans are already on welfare and things have not even gotten that bad yet.

This is nothing compared to what is coming.

As you can see from the chart posted near the top of this article, the last economic downturn appears to have permanently weakened the U.S. economy.

Now the next wave of the economic collapse is rapidly approaching.

How much worse will things get when it finally hits us?

That is something to think about.


TOPICS: News/Current Events
KEYWORDS: economy; employment; jobs; recession

1 posted on 09/09/2012 3:13:45 PM PDT by blam
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To: blam
On The Fed And WFP (Work Force Participation Rate At 31 Year Low)
2 posted on 09/09/2012 3:16:15 PM PDT by blam
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To: blam

Surely the fools who voted for Barrrrack must be feeling some of this as well.

Have they woken up yet?


3 posted on 09/09/2012 3:24:57 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: blam
The real unemployment number is the U-5 number, which includes discouraged people who want a job but have been unemployed so long and gotten so frustrated that they have given up. What the government and the media usually report is the U-3 number, which does not include these people. In the past few years the gap between the U-3 and the U-5 has been far, far larger than in the past.

But this isn't surprising. Obama lies about pretty much everything. Here's a thread that I started last night which proves that Obama is a serial, compulsive liar, who will lie and anything and everything:

Here are 95 examples of Barack Obama’s lying, lawbreaking, corruption, and cronyism

4 posted on 09/09/2012 3:25:24 PM PDT by grundle
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To: blam
The real unemployment number is the U-5 number, which includes discouraged people who want a job but have been unemployed so long and gotten so frustrated that they have given up. What the government and the media usually report is the U-3 number, which does not include these people. In the past few years the gap between the U-3 and the U-5 has been far, far larger than in the past.

But this isn't surprising. Obama lies about pretty much everything. Here's a thread that I started last night which proves that Obama is a serial, compulsive liar, who will lie and anything and everything:

Here are 95 examples of Barack Obama’s lying, lawbreaking, corruption, and cronyism

5 posted on 09/09/2012 3:26:07 PM PDT by grundle
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To: blam

Oops! Sorry for the duplicate. It’s the second one that contains the link to the thread - the first one contains the link to the article that’s in the thread, which I had copied by accident.


6 posted on 09/09/2012 3:27:11 PM PDT by grundle
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To: blam

Just drive through any Small Town USA and count the number of empty store fronts and vacant homes near by. Every where I go looks like a budding ghost town.

Recovery my ass.


7 posted on 09/09/2012 3:32:00 PM PDT by wrench
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To: F15Eagle

They will never wake up. Freebies and the chance to steal from “the rich” is the Democrats strategy.

This person has discussed the employment to population ratio many times.

https://confoundedinterest.wordpress.com/2012/09/07/economy-adds-only-96000-workers-people-going-on-disability-greater-than-decline-in-unemployment-since-june-2010/


8 posted on 09/09/2012 3:33:03 PM PDT by whitedog57
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Hope For Spare Change


9 posted on 09/09/2012 3:34:50 PM PDT by dsrtsage (One half of all people have below average IQ. In the US the number is 54%)
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To: wrench

It’s in the suburbs, too.

And many mid-sized cities have shopping centers, strip malls, with gaping holes in them, of empty spaces.

(not that big cities don’t as well).

How many will continue to believe the huge lie of “recovery”?

This is propaganda worthy of Josef Goebbels.


10 posted on 09/09/2012 3:35:28 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: blam

this crap is so wide spread that I don’t think anyone is fooled that down is up, but I guess you never know.


11 posted on 09/09/2012 3:39:26 PM PDT by WHBates
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To: whitedog57

NBC News just showed some idiot “Republican” who picked up Obama because he luvs him.

This “Republican” clown voted for Obama in 2008 and will do so again in 2012, according to the news story.

Obviously NBC was pumped about this “Republican”.

And Obama brought up the Birth Certificate.

Let’s see him submit one to a Federal Civilian court or a U.S. military court.

He will never, never, ever do it. Because he knows it’s a forged document.


12 posted on 09/09/2012 3:40:49 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: F15Eagle

NBC is barely less partisan than its counterpart on cable.


13 posted on 09/09/2012 3:45:21 PM PDT by skeeter
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To: blam

The Gold Standard Is Coming
http://www.freerepublic.com/focus/f-news/2928426/posts


14 posted on 09/09/2012 5:27:39 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the world.)
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To: familyop

15 posted on 09/09/2012 5:36:50 PM PDT by blam
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To: F15Eagle
Surely the fools who voted for Barrrrack must be feeling some of this as well.<<

I'm sure many are living it and feeling it....BUT...on the other hand many that had low paying jobs and were relatively self sufficient, have now figured out that a EBT card...section 8 housing...99 weeks of unemployment, plus many more “free government “benefits” are a pretty good deal over working!

(I'm intimately familiar with 2 such cases...The only change I've noticed is that they no longer only drink on the weekend and are packing on a little extra weight...)

16 posted on 09/09/2012 6:07:47 PM PDT by M-cubed
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To: blam

I don’t disagree with the statement that the unemployment rate is worse than the published numbers would indicate, but I have a dumb question: Is the nation’s shrinking workforce participation rate mostly a function of people “giving up looking for work,” or is it mainly the result of large numbers of people entering retirement?


17 posted on 09/09/2012 6:14:22 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Alberta's Child

I don’t know.


18 posted on 09/09/2012 6:26:03 PM PDT by blam
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