Monday, December 10, 2012

US Unemployment rate: Headlines don't quite match the story


"decline in the unemployment rate since 2008 has been due to people dropping out of the workforce..."

by Eric Dondero

Here's the headline from the ultra-leftist taxpayer-subsidized BBC: "US unemployment rate falls to four-year low."

Kind of sounds pretty positive 'eh? Almost jolly good as our British pals would say.

But here's the real story about halfway down:
The number of jobs being added by the US economy since the recession ended has been far weaker than during previous economic recoveries, and has scarcely been enough to keep up with the natural growth in the US population.

The total number of people in employment has been stuck at about 58% of the US population since 2009, well down from the 63% level that characterised the boom years of the past decade, as many Americans have retired or given up seeking work.

Moreover, the relatively good news for November was offset by the BLS's decision to downwardly revise the jobs figures for the preceding two months by a cumulative total of 49,000.

The October figure - which was originally reported just before the elections as 171,000, prompting some Republican supporters to suggest that the numbers had been manipulated - has been cut in the latest estimate to 138,000...

Statistics suggest that much of the decline in the unemployment rate since 2008 has been due to people dropping out of the workforce, either due to retirement or because they have given up seeking work.
And all those Republicans saying that the Obama administration was manipulating the jobs reports in September and October to influence the election, just conspiracies don't you know. Alex Jones, Jesse Ventura stuff, don't ya know. Nothing to see there. Move along. Move along now...

1 comment:

jgeleff said...

I think that anybody could see that book cooking. Couldn't they? So coincidental that the two months before the election showed an improvement in jobs numbers, then suddenly after the election it shows the same old story due to "revisions". Odd coincidence.