Yipee the unemployment rate went down, uh huh, sure it did. Oh and BTW, there is no Social Security or Medicare TRUST funds, welcomes the the world of myths. FDR broke the news to the Supreme Court, told them it was all a general tax, way back when -- But the government, they told the people there were trust funds, but then they have spent all the money. There is nothing there, zip nada, just a ponzi scheme.
Tyler Durden's picture
Wonder why the unemployment rate is at an artificially low 8.9%? Three simple words: Labor Force Participation. At 64.2%, it was unchanged from last month, and continues to be at a 25 year low. Should the LFP return to its 25 trendline average of 66.1%, the unemployment rate would be 11.6%. And indicatively, the Birth/Death adjustment was +112,000.
So if you reduce the size of the pool of jobs artificially, you get a better unemployment rate, simple math -- But you have done exactly nothing.
Gallup, who decides not to play the game, puts unemployment at 10.3% and underemployment at an astounding 19.9%. The reason for the difference in numbers is because companies have just given up trying to offer jobs because they don't have the money to do so. So these jobs just drop off the roles. The labor force does the same, they just give up looking, and that is what the very high 19.9% means.
So if you missed the real Jimmy Carter, welcome to the rerun.
Here is the Gallup truth ... Gallup of all companies, soldiers on with the truth. Unemployment, as measured by Gallup without seasonal adjustment, hit 10.3% in February — up from 9.8% at the end of January. The U.S. unemployment rate is now essentially the same as the 10.4% at the end of February 2010. Gallup puts “total unemployment plus under employments at a Cateresque 19.9 %.
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