When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Saturday, February 4, 2012

More on the Obama "Fudge" Jobs Report

More on the Obama Administration's "Fudge" Jobs Report:
US jobless rate falls to lowest level for three years - Telegraph: " . . . there was, inevitably, plenty in the report that offered support for those taking a more cautious stance. The Bureau of Labor Statistics had its annual revision of the total size of the potential working population, which helped flatter Friday's numbers. Another less encouraging indicator was that average hourly earnings edged up only 0.2pc on the month, a pace that economists say is not strong enough to do much for consumer spending. . . "

Comment to the above article:
The only reason the official UE rate "fell" to 8.3% is because 1.2 million workers were removed by BLS from the availalble labor pool during the month. This is the largest single-month drop in history. The Labor Force Participation Rate is now at a 30-year low of 63.7%. That is ABYSMAL!

This was NOT a good report. Far from it. Other measures of unemployment suggest that the actual UE rate increased to 11.5% while measures used prior to 1995 suggest an actual UE rate greater than 22%. (See:http://www.shadowstats.com/alt... )

As one analyst put it, "In fact other than January 2009 there has never been a single month in my table, which dates back to 1999, that put up a worse combined number. This "performance" rates a literal "second from utter despair and disaster", and the employment rate shows it:... This is not a strong report folks, and in fact documents an actual and ongoing collapse in the US labor force, despite the crooning on the mainstream media disinformation channels!" See: http://market-ticker.org/akcs-...

Even the liberal economist Paul Krugman knows it's "fudge"- Better - NYTimes.com:  "The usual caveats apply: it could be a blip, it might be an artifact of seasonal adjustment, etc.. Also, the gap remains huge. Suppose that we need 100,000 jobs a month to keep up with population growth, and that we’re 10 million jobs in the hole — both conservative estimates. Then we need about 7 years of growth at this rate to restore full employment."


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects