Friday, February 3, 2012

As Unemployment Rate Drops to 8.3%... 1.2Million Americans Fall From Labor Force

by: Les Carpenter
Rational Nation USA
Liberty -vs- Tyranny


Everyone must now be near ecstatic given the great news that 243,000 jobs were added to the work force and the unemployment rate dropped to 8.3%. Huge kudos to the President and his wiz bang economic advisers! Of course many thanks to the MSM for carrying this positive news of the day...

...the rest of the story... 1.2 million drop out of the work force. IN ONE MONTH.

Zero Hedge - A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that's not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. {Read More}

Click to Enlarge

Were the real number of unemployed (as well as the percentage) acknowledged by this administration, reported by the labor department and the media, there would be little to no question President Obama is a one term president.

In fairness, the gimmick calculation for determining the unemployment rate has been employed not just by this administration. But this one sadly stands to benefit the most from it.

Via: Memeorandum

4 comments:

  1. I don't have the numbers in front of me but 243,000 sounds like it might be the best month in years. Hopefully, it isn't a just a blip on the radar.

    ReplyDelete
  2. The 1.2 million number doesn't really mean anything, it was just a population adjustment. http://www.ritholtz.com/blog/2012/02/no-rick-santelli-and-zero-hedge-one-million-people-did-not-drop-out-of-the-labor-force-last-month/

    ReplyDelete
  3. David - Thanks for the link to BLS data. Upon reading the pertinent portion of the report I see your point. However, it remains that were the unemployment rate truly reflective of total unemployment, ie: reported unemployed, the number who have simply stopped looking, (thus no longer reported), the underemployed, the actual number would be over 15%.

    Perhaps the number to watch is the CBO, who has said unemployment will increase to 9.2% in 2013. At any rate it is going to be rough sailing for the next few years. The current administration may find itself getting a bit sea sick.

    ReplyDelete
  4. Implied Unemployment Rate Rises To 11.5%, Spread To Propaganda Number Surges To 30 Year High

    http://www.zerohedge.com/news/implied-unemployment-rate-rises-115-spread-propaganda-number-surges-30-year-high

    ReplyDelete

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