At first blush, the employmet report released on Friday stated that unemployment FELL from 10% to 9.7%. Our President, who LOVES to take credit when NONE is due, was first to proclaim that HIS policies were working! Readers of "Marko's Take" know that all such proclamations from the current administration should be treated as highly suspect and the hour long "back patting" session did not disappoint.
The jobless rate fell to 9.7% from 10% in December, the Labor Department said Friday, because its survey of households found more people landed jobs than entered or returned to the labor market. However, a separate survey of employers, which counts how many workers are added or cut from payrolls, found that 20,000 jobs were eliminated last month. And revisions to last year's data found far more jobs were lost over the 12 months than previously predicted.
Annual revisions to the payrolls data showed job losses since the recession began were much deeper than originally thought. The economy has lost 8.4 million jobs since December 2007, compared with 7.2 million before the revisions. In January, the number of "discouraged job seekers" stood at 1.1 million, up from 734,000 a year ago. Last month, 6.3 million people had been out of work for more than 27 weeks.
Analysts expect U.S. payrolls to start growing in February as the government steps up temporary hiring for the 2010 census. Thankfully, we have BIG BROTHER as the employer of last resort!
The myriad of "seasonal adjustments" make it extremely difficult to look further below the surface until more data begins to be revealed - but suffice it to say that the "good news", as reported on Friday, was tepid at best. We expect the increase in unemployment to resume its downward trajectory as the economy begins its trip towards its inevitable second dip.
Marko's Take
You are correct, the government with their fancy accounting tricks ,they message all the numbers etc.The whole thing is such a joke ,why anyone pays any attention to any report they put out is beyond me.
ReplyDeleteIt's worse than that. One of the reasons that the number of those seeking employment declined is because so many have simply given up, taking them out of the "unemployment" rolls.
ReplyDeleteHey Rdisrael and DHH:
ReplyDeleteYou are both absolutely correct!
Thanks for the comments. According to Shadow stats, the real unemployment rate is still in excess of 22%!
Yep, things are sliding downhill fast. Thank God we have vigilant people like you out there!
Comments most appreciated!
M
You are correct, just wanted to add that Shadow Stats ,which is written by John Williams is excellent ,if you want to know the truth behind those phony reports the Government puts out.
ReplyDeleteRD:
ReplyDeleteI subscribe to it...because it's so excellent and I frequently use it in the Take.
I'm delighted having informed people on this site. I hope to see you again, with your excellent comments again.
Marko