Skip to comments.The Unemployment Rate Should Lose Its Job
Posted on 07/07/2014 8:15:41 AM PDT by SeekAndFind
Recent economic headlines have probably left you scratching your head. Last week, we learned that GDP decreased by an alarming 2.9% in the first quarter, continuing a trend of weak growth since the end of the recession in 2009. Normally, this means that unemployment should be getting worse, or at least not improving much. And yet, the BLS reported last Thursday that the unemployment rate fell again in June. It's now 1.4 percent lower than it was at this time last year, suggesting the economy is strengthening.
So what's really going on? Are Americans' job prospects getting better or worse?
To find an answer, the first step is to look beyond the BLS' headline unemployment rate, because it's more misleading than helpful right now. Instead, consider four measures: Total Nonfarm Payroll, the Civilian Employment-Population Ratio, Job Seekers per Job Openings, and the U-6 rate. Together, these reveal a labor market that isn't quite as bad as the first quarter's GDP numbers suggest, but still far too weak to declare a full economic recovery.
As many have noted, one problem with the BLS' monthly unemployment number is that it fails to include unemployed people who have quit looking for work, distorting the true state of the labor market. So, while the latest unemployment rate is significantly lower than it was one year ago, it doesn't tell us to what extent the decrease has been caused by more people finding work, or more people giving up looking for work.
No one statistic can fully answer this question, but four figures taken together give us a good sense for whether last week's falling unemployment rate is good news, bad news, or something in between:
(Excerpt) Read more at realclearmarkets.com ...
Unemployment Drops to 0% as Last Worker Leaves Labor Force
The People’s Cube ^ | May 3, 2014 | Opiate of the People Posted by 4Liberty
Comrade Barack Obama today became the first to achieve a milestone coveted by enlightened central planners everywhere when the Bureau of Laborious Statistics announced the much-followed totally-meaningless “headline” U3 unemployment rate for last month was ZERO PERCENT! This means that the glorious economic recovery he engineered after the disastrous Bush years has now attained FULL EMPLOYMENT!
It is a tribute to Professor Obama that he was able to find the Holy Grail which eluded history’s greatest economic thinkers such as Lenin, Stalin and Mao. This landmark achievement along with his establishment of free healthcare for everyone via the Affordable Care Act cements his reputation as the Greatest Leader in this or any other universe for all time.
The dramatic moment occurred at 12:03 PM, four weeks to the day after Lyman Yilk, a pipe-fitter from Bittcling, Pa, finally gave up looking for work. Mr. Yilk has been unemployed since 2005 but was on a celebratory bender since the day after Mr. Obama’s first election and did not know that the Keystone Pipeline (which Mr. Yilk was hoping to find work on) had been cancelled due to environmental concerns. When he finally sobered up four weeks ago and learned the project was dead, he abandoned his search to find a job.
Mr. Yilk was the last worker to leave the labor force and turned the lights out as he left. According to the BLS definition:
Quote: U3: Official unemployment rate per the ILO definition occurs when people are without jobs and they have actively looked for work within the past four weeks. Without Mr. Yilk, there was no one actively looking for work any longer, hence the U3 rate was now ZERO PERCENT, praise Obama!
Gloom-and-doom naysayers were quick to note that the labor force participation rate had also dropped to zero percent which (according to them) was not a good thing as it meant no one was employed. Comrade Nancy Pelosi countered their racist, straw-man argument brilliantly by observing that it also meant no comrade was any longer “job-locked” and each was free to be an artist, writer, hooker, etc, and pursue their passion.
“There is no underestimating this tremendous achievement of Barack Obama” said Paul Klugeman, an expert on hiding declines and fudging economic statistics as well being the self-proclaimed “Conscious Liberal”. “Comrade Obama has achieved the socialist dream of freeing all of The People from the slavery of work and permitting them to live off of someone else’s dime as god, if he existed, would’ve wanted.”
Dr. Klugeman was asked if a problem would arise due to the fact that since no one was working, there would also be no one to pay for the benefits that all the non-workers were collecting.
“Nonsense”, he proclaimed. “The Fed will simply print money for artists and writers and hookers to use to buy things from China! What could go wrong?”
It seems so simple now, it’s a wonder no one ever thought of it sooner.
“The genius of Dear Leader Barack Obama lies in his simplicity”, said Dr. Klugeman.
We are living on a “Lie Bubble” that is the system metrics have been skewed and exagerated and/or minimized to give the ill-usion that everything is AWESOME!
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