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June 3, 2016. Today the Bureau of Labor Statistics announced that the US economy only created 38,000 new jobs in May and revised down by 59,000 jobs the previously reported gains in March and April.

Yet the BLS reported that the unemployment rate fell from 5.0 to 4.7 percent, a figure generally regarded as full employment.

The May jobs increase only covers a small fraction of the monthly growth in the labor force and, therefore, cannot account for the drop in unemployment.

Moreover, the BLS reported that the labor force participation rate fell by 0.2 percentage points, bringing the decline to 0.4 percentage points over the past two months. Normally, a strong labor market, such as one represented by a 4.7% unemployment rate, causes an increase in the labor force participation rate.

The question becomes: How real is the 4.7% rate of unemployment?

The answer is: Not at all.

The unemployment rate dropped because people unable to find jobs ceased looking and are no longer counted as being in the labor force. If you are unemployed but not considered part of the labor force, you are not included when unemployment is measured. The BLS says that in May there were 1.7 million Americans who “wanted and were available for work,” but “were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.”

In other words, the unemployment rate is a useless measure of unemployment, just as the consumer price index no longer measures inflation. What were once useful statistical measures have been converted into good news propaganda.

Another inconsistency is the BLS report that, despite the low unemployment rate, in May almost another one-half million Americans were forced into part-time jobs as full-time employment was not available.

The average work week is no longer 40 hours. The shrinkage of the average work week to 34.4 hours (May) is another reason for declining real median family income. Assuming 3 weeks of vacation, a 34.4 hour work week is 274.4 hours less per year. At $20 per hour, for example, a 34.4 hour work week produces $5,488 less annual income than a 40 hour week.

The loss of annual income is greater for many. The average is a result of shorter and longer work weeks. The shorter work weeks that pull down the average are not full-time jobs and therefore do not receive health and pension benefits.

Just as Washington and the presstitute media lie about everything else, they lie about the economy.

The United States of America has beeen reduced to a House of Cards whose foundation is lies.

How long can it stand?

(Republished from PaulCraigRoberts.org by permission of author or representative)
 
• Category: Economics • Tags: Unemployment 
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  1. I guess TPTB figure that the majority of America’s undecided voters fall among those still working … tell them that things are booming just before the election and they will vote for more of the same. Wasn’t “stay the course” the tag-line of the Bush I election, even though we new he was no Ronaldus Maximus?

  2. How long can it stand?

    Long enough to get through the election I expect.

    Anyway, it’s always good to see PCR’s take on the jobs report.

    • Agree: Orville H. Larson
  3. Given the decades now that supposedly unemployment has been underestimated you would expect there to be a huge, enormous increase in the homeless population as people exhausted their savings.

    Where are they?

  4. @Bill Jones

    Good and dramatic reply but it doesn’t fit.

    1/ The link shows that the death rate among non-Whites is falling so no real overall change.

    2/ Not to be morbid but once someone is dead they are not counted in any unemployment stat so that wouldn’t fit.

  5. woodNfish says:

    All true, and yet Ron Unz is promising silicon valley companies that they he will help them replace amerikan workers and destroy living wages in return for bribes to his campaign:

    http://www.unz.com/runz/solving-silicon-valleys-immigration-problem/

  6. A lucid, straightforward piece in which Dr Roberts gets to the facts ignored by the MSM. We need more like these, not the tedious conspiracy-laden, but fact-light pieces that he has written.
    We need more of the former.

  7. bondo says:

    with gated communities, armed security, police forces additionally trained in israel to hate, shoot first, what one per center cares about america.

    maybe one or few. i think trump cares which is why he is demonized.

    warbama, oreobama, synagogue/house negro, and soulless ghoul, has secret treaties to push onto the world to further destroy america and workers elsewhere.

    just call middle america and much of the rest of the country “flint”:

    jobless, eating and drinking poisons.

  8. In other words, the unemployment rate is a useless measure of unemployment, just as the consumer price index no longer measures inflation. What were once useful statistical measures have been converted into good news propaganda.

    Doesn’t CPI not include the cost of food and fuel? Because who really needs those things, right?

    And the U-6 unemployment rate was nearly 12% when they switched to U-3 in 1994, and got as high as 16.7% in 2010. I remember 1994 pretty well, and a 16 percent unemployment rate would have triggered apocalyptic headlines. Instead, in 2016, we get “More Good News” about Dear Leader.

    I think there are 2 reasons behind the fraud:

    1) Workforce participation is dramatically different than even 30 years ago. It used to be that able-bodied men over 18 were expected to work, full-time if possible. Now, a huge chunk of 18 to 31 year old’s either work part-time or not at all, many piling up non-dischargeable debt as “students.” To this you add the millions of people who have simply dropped out of the old-school tax paying workforce and instead rely on occasional “under the table” grifting, scams, crime, the generosity of parents, and various forms of dubious “disability” compensation.

    2) Fed Gov is deliberately lying to keep anyone with the gumption to raise a pitchfork pacified. What’s strange here is that liberals, many of whom were communists back in the 60s or went to great lengths to debunk the alleged prosperity of the 80s, are now dyed-in-the-wool apologists for TPTB. I suspect this has to do with a) so many of them are now members of the Establishment, whether in media or government, and b) they’ll do anything to prop up a black President, sort of like how they ignore massive black crime rates and obsess over Evil White Male Rapists at Stanford.

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