Everything You Need to Know About the Jobs Report

Townhall3The unemployment rate isn’t dropping. Government and the political spinners lie (as if we didn’t already know that). Here is an excerpt from one article and a link to two others. First, from Michael Shedlock:

The official unemployment rate is 7.4%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6.

U-6 is much higher at 14.0%. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

Labor Force Factors

  1. Discouraged workers stop looking for jobs
  2. People retire because they cannot find jobs
  3. People go back to school hoping it will improve their chances of getting a job
  4. 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 8,245,000 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.

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Finally, here are three other posts worth your time:

Full-Time Employment Down Over 5 Million Since 2007

Unemployment Isn’t Going Anywhere Fast

Part-time jobs account for 97% of 2013 job growth