The unemployment rate: 19.9% or 8.3%?

This is a long, math-strewn article I am basing this on and will quote sparingly from it. But statistically it is quite accurate. Basically it analyzes where 9 million US working people went from the Labor Department statistics.

 

 

As we will explore herein, a detailed look at the government’s own data base shows that about 9 million people without jobs have been removed from the labor force simply by the government defining them as not being in the labor force anymore.  Indeed – effectively all of the decreases in unemployment rate percentages since 2009 have come not from new jobs, but through reducing the workforce participation rate so that millions of jobless people are removed from the labor force by definition.

In an extraordinarily cynical act, the government is effectively saying that because the job situation has been so bad for many millions of unemployed people in their 40s, 30s, 20s and teens, they can no longer be considered to be potential participants in the work force at all.  Because there is no hope for them – they no longer need to be counted.  And it is this steady statistical cleansing from the workforce of the worst of the economic casualties – of these very real millions of individual tragedies – that is being presented as a rapidly improving jobs picture.

Us geeks have long known that the commonly quoted U-3 employment figures the BLS presents are skewed. This began under the Clinton Administration and Washington so liked it, they have amped it up. Essentially, those who are long-term unemployed are simply declared “unemployable” and not counted. A more accurate measure of un- and under-employment is U-6

 

But the U-6 chart looks very different.

 

 

The gummint is blaming the Boomers even though they really aren’t retiring much right now. It is the young people taking the hit.

 

There is a lot here to digest but the main point, IMO, is that there are a lot more hungry people out of work than the Gummint wants to admit. And someday there will be a reckoning.

Advertisements
Previous Post
Leave a comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: