Skip to comments.Another Phony Employment Report
Posted on 10/06/2012 2:49:01 PM PDT by Abiotic
Fridays employment report from the Bureau of Labor Statistics shows 114,000 new jobs in September and a drop in the rate of unemployment from 8.1% to 7.8%. As 114,000 new jobs are not sufficient to stay even with population growth, the drop in the unemployment rate is the result of not counting discouraged workers who are defined away as not in the labor force.
According to the BLS, In September, 2.5 million persons were marginally attached to the labor force. These individuals wanted and were available for work, but they were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
In other words, 2.5 million unemployed Americans were not counted as unemployed.
The stock market rose on the phony good news. Bloombergs headline: U.S. Stocks Rise as Unemployment Rate Unexpectedly Drops.
A truer picture of the dire employment situation is provided by the 600,000 rise over the previous month in involuntary part-time workers. According to the BLS, These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.
(Excerpt) Read more at foreignpolicyjournal.com ...
My son-in-law now has two part-time jobs, totalling 60+ hours per week. I guess he has done twice his share at reducing the unemployment rate.
No one is asking the right questions.
Why is Bernanke sounding hysterical about needing open ended QE3 on September 13, 2012 to aid intractable unemployment? He and the Fed have access to the BLS and the figures from other government agencies.
And now, it seems that Bernanke was Chicken Little since the BLS figures were “good.”
Who is lying? Bernanke and his ploy for open ended quatitative3 to “help” the dismal job market?
Or is it the Obama admin ginning up the figures?
One or the other is lying.
Wonder how many said “The hell with it, I’m going deer hunting”....?
Obama’s administration 6-8 weeks ago changed the definition of “working” under welfare. On bed rest, watching your kids, saying you cared for an elderly neighbor, all now count as work. Now many on welfare or the dole suddenly count as having part time jobs, none of which is paid.
I think some of the talking heads on TV have this right - those who are out of work already know it and don’t give a crap about what these numbers are anymore since they don’t reflect their own reality. I will say that young people I know who can’t find their first career jobs are getting “pissed” and liking the Obama alternative.
I was wondering - since we got a big drop in unemployment, can the Benbernank stop printing money now?
“Everything about socialism is sham and affectation.” - 23.11; Ch23 Evil; Economic Harmonies; Frederic Bastiat 1801-1850