Skip to comments.Why the Job Numbers Are So Bad(Recovery Unemployment: 4/5 is a Drop in Labor Force Participation)
Posted on 05/28/2012 7:14:46 AM PDT by Son House
The unemployment rate fell to 8.1 percent because another 522,000 adults quit looking for work and are no longer counted.
In the weakest recovery since the Great Depression more than four-fifths of the reduction in unemployment has been accomplished by a dropping adult labor force participation rateessentially, persuading adults they dont need a job, or the job they could find is not worth having.
In the first quarter, growth slowed to 2.2 percent and was largely sustained by consumers taking on more debt, and additions to business inventory.
Gains in manufacturing production have not instigated stronger improvements in employment largely because so much of the growth is focused in high-value activity. Assembly work, outside the auto patch, remains handicapped by the exchange rate situation with the Chinese yuan.
And concerns about the durability of the recovery and health care costs when Obama Care is fully implemented make employers very cautious about adding to headcount.
Overall, the situation with the yuan is the single largest impediment to more robust growth in manufacturing and its broader multiplier effects for the rest of the economy; the Obama Administration indicated it has no intention of challenging China on this issue, but presumptive GOP standard bearer Mitt Romney promises a harder line.
Factoring in those discouraged adults and others working part time for lack of full time opportunities, the unemployment rate is about 14.5 percent. Adding college graduates in low skill positions, like counterwork at Starbucks, and the unemployment rate is likely closer to 18 percent
Growth is weak and jobs are in jeopardy, because temporary tax cuts, stimulus spending, large federal deficits, expensive but ineffective business regulations, and costly health care mandates do not address structural problems holding back dynamic growth and jobs creationthe huge trade deficit and dysfunctional energy policies.
(Excerpt) Read more at cnbc.com ...
Words not seen in the MSM since Nov 2008:
Recovery for Wall $treet but not Main Street
I’m sure there are plenty of others....
That has begun to change when it went to 8.1. I was stunned to hear separate radio news stories (CBS & AP) that did mention the steep rise in people not being counted because they ran out of benefits. One mentioned the larger number of those dropping out of the workforce and explained how it affected the unemployment numbers.
I can’t decide who is more to blame Jefferson, Reagan or Bush II?
Certainly not his O’liness???
Yes there is some news outlets that wish to have credibility in the future by mentioning this, but are they using it to counter any Democrat claims of an economic expansion? Mostly a rhetorical question, time will tell.
Unusual. Normally CNBC is agitprop for Obama. Something else might be up in re the timing of this.
The Bilderberg Meeting is this week in Virginia, May 30 - June 3.
I’m sure if they wanted Romney to win, he would. I’m sure they approve of him.
If so, they would get their lackey media orgs to start dissing Obama. He has turned out to be such a debacle, that the BB’s might want someone more respectable (at least on the surface) in there.
Recovery for Wall $treet but not Main Street
Are you implying the New York Times, Washington Post, CNN, NBC, ABC, and every newspaper in the country except one are BIASED? I'm shocked. Shocked you would think such a thing.... /s
But the trouble is that IT IS happening here in the open right under our noses. The Administration routinely lies to us in their propaganda. And the MSM allows it without a whimper.
The Administration routinely threatens all elements of society (even SCOTUS) to "do what we say". And the MSM allows it without a whimper.
The Administration routinely removes Constitutional Authority from Congress and gives it to unconstitutional czars. And the MSM allows it without a whimper.
The Administration is routinely attempting to give away constitutional Sovreignty to foreign and international bodies. And the MSM allows it without a whimper.
"It cannot happen here!" Oh! yes it can.
I understand this completely, however, I heard one economist say that MOST of these labor force dropouts, would have happened anyways, no matter the state of the economy or the president, because it was a large group of aging baby boomers dropping off the rolls.
The Baby Boom of 1946 to 1964 have just started retirement age, the big wave is yet to come.
However, retirement age boomers I know aren't retiring because they've had their 401K plans decimated over the past four years and they're afraid Social Security won't last, so they continue to work.
These are all in the private sector, obviously. Public sector has ludicrously plush pensions on top of double dipping and deliberately padded last year earnings to elevate those plush pensions even further away from anything approaching reality, speaking of bankrupt.
It can't end well. It may hold together for years, but there is a reckoning coming.
MSM = Pravda
Hmm, am I impugning Pravda?
Even Pravda could not do this....
March 15: Reported - 351,000, Revised - 353,000
March 22: Reported - 348,000, Revised - 364,000 Reported - down, Actual - up ***
March 29: Reported - 359,000, Revised - 363,000 Reported - down, Actual - down
April 05: Reported - 357,000, Revised - 367,000 Reported - down, Actual - up ***
April 12: Reported - 380,000, Revised - 388,000 Reported - up, Actual - up
April 19: Reported - 386,000, Revised - 389,000 Reported - down, Actual - up ***
April 26: Reported - 388,000, Revised - 392,000 Reported - down, Actual - up ***
May 03: Reported - 365,000, Revised - 368,000 Reported - down, Actual - down
May 10: Reported - 367,000, Revised - 370,000 Reported - down, Actual - up ***
May 17: Reported - 370,000, Revised - 372,000 Reported - no change, Actual - up ***
May 24: Reported - 370,000, Revised - TBD Reported - down, Actual - TBD
So out of the last 10 weeks 6 weeks were INCORRECTLY reported indicating a false favorable trend. Of the remaining 4 weeks one was correctly reported down and the other three were up - and correct reported as so. So in 10 weeks you have had 9 weeks of ‘positive’ headlines when in fact there has only been 3. And a couple of those were very slim margins. If you only read the headlines since the ‘4 year record low’ in March you would think that the unemployment was a non-issue.