The unemployment rate (“U3”) dropped to 7.4%! Oh happy days!

On closer examination you might not be so gleeful; here is why.

In July, 37,000 people gave up and dropped out of the job search, so the Labor Force Participation Rate (LFP) fell from 63.5% to 63.4%. Some will argue that those dropping out of the LFP are retirees, but if it were, we wouldn’t be seeing record numbers on food stamps and disability.

For some insane statist-driven reason, the unemployment rate is tied to the Labor Force Participation Rate (LFP). In other words, if all of America gave up looking for work, the unemployment would be zero.

Just so you know, the “official” (U3) unemployment rate does NOT count discouraged workers who have settled for part-time jobs or have given up looking altogether. Tracking those individuals, under what’s called the “U-6″ rate, gives a very different measure of the nation’s unemployment rate: 14.3%.

Forbes 7 2013 unemployment U 6

 

Unlike other jobs figures, the U-6 rate actually got worse in June, as it went up by 0.5 percentage points. For example, of the 953,000 jobs created thus far in 2013, 77% are part-time.

All year, Obama’s “recovery” has only created 222,000 full time jobs. Based on the population, there should be approximately 200,000 new jobs created per month. Using these numbers, 2013 alone has created 978,000 fewer than needed to just break even!

Like the “official” rate, the U-6 has practically doubled between 2007 and 2009, but unlike the official rate,  the U-6 is not coming down as fast. Unfortunately, most news organizations don’t cover the U-6 rate, and many so called economists in the media don’t focus on it.

Real economic expert (or at least the honest ones, watch the number of jobs created. In July it was 162,000.

That may sound like a lot of jobs. But it was less than what economists say we need to create just to keep up with population growth! That number is about 200,000 jobs each month.

Another number you should know is the number of jobs that existed in 2008 and the number of jobs that exists now. There were 4.7 million fewer jobs in September 2012 than there were in January 2008, the month when employment peaked. However, during that same time the Federal government grew by 11%!

So right now, there are about 2 million fewer jobs in the United States than there were in January of 2008, AND we have gained about 11 million people, 304 million versus 315 million (that’s not counting the illegal population).

 

Blogging For Liberty .info

 

SOURCES

Sources include:
United States Census Bureau.
Forbes PHARMA & HEALTHCARE  7/05/2013 @ 7:21PM

Hiring slumps in July By Annalyn Kurtz  @CNNMoney August 2, 2013:

FIVE THINGS MEDIA AREN’T TELLING YOU ABOUT TODAY’S JOBS NUMBERS http://www.breitbart.com

Jobs In America, In 2 Graphs, LAM THUY VO and JESS JIANG, September 07, 2012,http://www.npr.org/

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