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Establishment Survey: +169K Jobs, June And July Revised Lower; Household Survey: Employment -115,000, Not In Labor Force +516,000; BLS In Wonderland

Friday, September 6, 2013 - 10:54 AM


Labor Force Factors

  • Discouraged workers stop looking for jobs
  • People retire because they cannot find jobs
  • People go back to school hoping it will improve their chances of getting a job
  • People stay in school longer because they cannot find a job

Were it not for people dropping out of the labor force, the unemployment rate would be over 9%. In addition, there are 7,911,000 people who are working part-time but want full-time work. 

Grossly Distorted Statistics

Digging under the surface, much of the drop in the unemployment rate over the past two years is nothing but a statistical mirage coupled with a massive increase in part-time jobs starting in October 2012 as a result of Obamacare legislation.

Wonderland Statistics 

Compared to recent Gallup surveys, these BLS stats regarding the base unemployment ate and the alternative measures as well are straight from wonderland. For details, please see Gallup Says Seasonally-Adjusted Unemployment Climbs to 8.6%; Who to Believe (Gallup or the BLS)?

I believe Gallup. Thus, I expect more downward revisions in jobs, and upward revisions in the unemployment rate. 








Read more at Mish's Global Economic Trend Analysis 

 

 

 
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MikeMike327 posts since
Feb 22, 2010
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