The jobs report for December is out and it shows that the economy created 74,000 jobs in December. This is a terrible number. It is about 126,000 jobs below the consensus view of the "experts" that there would be 200,000 jobs created. The number is so bad that it seems to be a confirmation that the economy is slowing (although one month ought never be used for that purpose.)
The problem, of course, with this report is that the feds also tell us that unemployment during December fell from 7.0 percent to 6.7 percent. That is the biggest drop in unemployment in years. But here's the rub: the working age population of the USA went up by more than 74,000 people during December. That's right, there were more new folks who ought to have been looking for a job than there were jobs created. But the feds are reporting a major decline in unemployment. And why? Supposedly, huge numbers of working people just gave up looking and left the workforce.
The employment report always has some distortion in it since it is the result of a survey. This latest one, however, is ridiculous. The numbers seem so far off the mark that they look like the result of intentional distortion. We learned recently that the Obama administration skewed the results just prior to the election to try to help Obama's campaign. Is that happening again? It sure looks like it.
The problem, of course, with this report is that the feds also tell us that unemployment during December fell from 7.0 percent to 6.7 percent. That is the biggest drop in unemployment in years. But here's the rub: the working age population of the USA went up by more than 74,000 people during December. That's right, there were more new folks who ought to have been looking for a job than there were jobs created. But the feds are reporting a major decline in unemployment. And why? Supposedly, huge numbers of working people just gave up looking and left the workforce.
The employment report always has some distortion in it since it is the result of a survey. This latest one, however, is ridiculous. The numbers seem so far off the mark that they look like the result of intentional distortion. We learned recently that the Obama administration skewed the results just prior to the election to try to help Obama's campaign. Is that happening again? It sure looks like it.
No comments:
Post a Comment