Friday, January 10, 2014
UNEMPLOYMENT RATE -- TRUE VS. REPORTED UPDATE
We have written before here about false and misleading data being reported by the Bureau of Labor Statistics as long ago as March 20 2012 and most recently on January 2, 2014. Like too much government data and general information, employment data continue to be reported misleadingly. For political reasons? It seems most likely.
Today I awoke to news that the unemployment rate has dropped from 7.0% to 6.7%. Good news. Right? Not necessarily, and not in fact as numbers are analyzed and unreported details revealed.
Even though the data covers the holiday hiring period, which should portend an increase in jobs, only 77,000 new jobs were recorded. So why is the unemployment rate down by 0.3%? Participation rate! The number of employable people actually seeking jobs.
The labor participation rate dropped under 63% for the first time in 35 years to 62.8%. If the numbers for those dropping out of the "job market" are computed as unemployed instead of being ignored, unemployment is 11.4%. The ruse of inaccurate reports continues by BLS, CBO, OMB etc. Why? Politics. People should demand better. But, they won't.