The official unemployment rate released yesterday showed the unemployment rate dropped to 5.9%. Really, folks, does anyone outside of the Beltway where money is flowing like water believe that number? But, if you juggle the numbers long enough and apply the right statistics, it was easily derived. Here's the real story.
Currently, the measurement of unemployment only includes those out of work amongst a work force or potential work force of those who are either employed or actively seeking employment. So with a gain of nearly two hundred fifty thousand people finding employment, the unemployment rate did officially drop from 6.1% to 5.9%. But the picture presented is only part of the story since nearly three hundred fifty thousand were dropped from the statistical base, meaning no longer looking for work. Once an out of work former employee has either used up his unemployment benefits or has given up looking for work, he or she no longer counts in the measurement. So what we really have is a net loss of about one hundred thousand. That's the difference between the number counted as employed and the number no longer in the statistical basis.
Let's put it another way which makes it even clearer. Only 62.7% of the working age citizenry in America is actually employed. This is the highest percentage reported and it is an indication of a failing economy. And wage growth is paltry and the average hours worked was 34.6 per week, meaning that a large number of those considered to have found jobs are picking up part-time jobs, not full-time employment.
If you face the truth, much of that can be directly tied to Obamacare with employers cutting hours and jobs to improve their bottom line by dropping health coverage. And don't forget there is double counting, since many are working multiple jobs to make ends meet. Clearly all of this additional information takes the icing off the cake.
Remember the old saying: "Figures lie and liars figure?" Well, that statement and the old computer line "Garbage in, garbage out (GIGO)" are appropriately applied here. The figures are based upon a new measurement standard, not the old traditional one, and the data is an estimate based upon data provided from employment sources, not an actual count.
Be very afraid of information provided by this administration. Whether it involves your safety from incoming disease, promises that "if you like you doctor you can keep your doctor", or the employment numbers, verify that what you are being told is factual. The books are clearly being cooked. So if you want the truth, you'll have to look around on your own and see what your eyes tell you. It will be much more indicative of the true state of affairs today.
Now, it's Saturday, fuhgettaboutit for the rest of the day. Go out and do something to get your mind off your troubles and have some fun. You can always come back to the not so much fun stuff on Monday. Have a good weekend.