Why U.S. Unemployment Numbers Are A Fantasy


There is more fantasy in the U.S. employment numbers than in a Harry Potter novel. According to the BLS, the U.S. added 120,000 jobs in November 2011 and the unemployment rate fell by 0.4%. This is not possible. The U.S. economy needs to create approximately 150,000 jobs a month to keep the unemployment rate steady based on new entrants into the labor force (the oft cited 200,000 figure is based on past conditions that are no longer applicable).

According to official sources, the U.S. added 131,000 jobs a month in 2011. This is better than in previous years, but still not enough to reduce the unemployment rate. Yet, the BLS (Bureau of Labor Statistics) claims the unemployment rate is dropping and fell from 9.0% to 8.6% in November. How is this possible? Well, first of all, it isn’t. These numbers were created — and “created” is a very appropriate word in this case — by claiming that large numbers of workers left the U.S. labor force. At the same time, the U.S. government has stated that an economic recovery has taken place. A country’s labor force does not shrink during recoveries, it grows. This has not happened during the current U.S. “recovery”.

The U.S. labor force had approximately six million fewer workers in November 2011 than it did in November 2007. Four years ago, 146,793,000 people were employed in the U.S. In November 2011, only 140,987,000 had jobs. These numbers make no sense if a recovery has taken place. It does make sense however if there is an ongoing recession and government statisticians have decided to massage the numbers for political reasons.

On the flip side, there were 79,069,00 people not in the labor force in November 2007 and today that number is 86,757,000 — almost eight million greater. The labor force of the U.S. should not be shrinking because the number of students and immigrants looking for jobs exceeds the number of people retiring.

People do leave the labor force though if they have determined that there simply are no jobs to be found. The recent Consumer Confidence survey from the Conference Board indicated that less than 6% of Americans thought jobs were currently plentiful. In November 2011 alone, the BLS claims that the U.S. labor force dropped by almost a net 600,000. This helped reduce the reported unemployment rate to 8.6%.

This form of statistical manipulation is something that might be expected in a corrupt third-world backwater. Apparently, this is the standard that Washington is now adhering to for its statistical reporting. Disclosure: None Daryl Montgomery Author: “Inflation Investing – A Guide for the 2010s” Organizer, New York Investing meetup investing.meetup.com/21 This posting is editorial opinion. There is no intention to endorse the purchase or sale of any security.

2 Responses

  1. Endgame Resetter says:

    Please light up your inner heart ( don’t be deceived by the warm light like, but by the real cool light like, the opening of the 3rd eye/inner heart by the two different elements are totally opposite). In the USA, please get to know Grandshaykh Nazim. American people, please help yourself to help your country. Please don’t let the culprit discarded you and your country after all the bad deed and debt. And more, don’t let them loose to another new place in starting new bad deed and debt.
    Sorry that you all especially have to start all over again. There is not much can be salvaged back even if you can apprehend the culprit, after all, their rich cash assets are just debt. No doubt they have free ride us all worldwide for 40 years, event death will not be just, but then at least we can put a full stop to their crime.
    I know rising up to them will get you labelled as terrorist/extremist, so try to start up with dialogue between you and the security forces ie police and army. Internet is faster, but then you know as much as I do on their acts on censorship etc.

  2. We are seeing the collapse going worldwide in the first quarter on 2012…

    The contagion spreading, and the entire system going into Global Collapse…


Leave a Reply

© 2011 Pakalert Press. All rights reserved.