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Another Fabricated Jobs Report
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According to Friday’s (January 8) payroll jobs numbers, almost 300,000 new jobs were created in December. Additionally, the previous two months were revised upward by 50,000 jobs. Apparently, the equity market did not believe the report, with the averages moving down today.

As I have pointed out almost monthly for what I think could be approaching two decades, the alleged job growth always takes place in nontradable domestic services, that is, in areas that do not produce exports and have no competition from imports. This is the job profile of a Third World country.

Twelve years ago I predicted at a major Washington, D.C., conference that was nationally televised that in 20 years the United States would have a Third World economy if jobs offshoring, which benefits only corporate executives and shareholders, continued.

Jobs offshiring has continued, and judging by the payroll jobs reports from the US government, the US is already a Third World economy.

The presstitute financial media—and what they are is a bunch of whores—always reports the alleged jobs increase as if it is a great thing, testimony to the continuing strength of the American economy, and so forth. Only a handful of us look at the data and reveal its meaning. Once again I will strip away the Matrix and show you the reality.

Allegedly, the US economy has been in recovery since, if memory serves, June 2009. If so, it is an unusual recovery. Normally, the rising job opportunities associated with economic recoveries bring entrants into the labor force, but the US labor force participation rate has been declining. In December, 2015, there are 1,185,000 fewer Americans in the labor force than in December 2014; yet, the working age population is higher today than a year ago.

The reported unemployment rate does not include “discouraged workers,” that is, workers who unable to find jobs have ceased looking for work. The reported unemployment rate of 5% only counts non-discouraged workers who are still expecting to find a job. The actual unemployment rate, that is, the rate that includes Americans who have given up hope of finding employment, is 23%. Currently, there are 94,691,000 Americans of working age who are not in the labor force. In other words, the US Gross Domestic Product (GDP) is deprived of a large percentage of its labor input.

Now, we will pay attention, unlike the financial presstitute media, to the age groups who benefited, according to the BLS, from the 292,000 December new jobs. About half of the alleged new jobs—142,000—went to the 55 years old and over age group. This age group consists primarily of retirees who have found it necessary to supplement their retirement income and of those near retirement who are working in order to compensate for the lack of interest on their savings due to the Federal Reserve’s zero interest rate policy. These are part-time, lowly paid jobs without benefits.

Americans of prime working age, 25 years old to 54 year old, only received 16,000 or 5% of the new jobs.

Those aged 46 to 54 lost 165,000 jobs. In other words, middle aged people are losing their jobs before they can provide for their retirement.

There are 527,000 more Americans working multiple jobs in December 2015 than in December 2014.

ORDER IT NOW

Now, as we have done so often for many years, let’s look at the make believe jobs that the BLS claims. Almost all of them are in lowly paid domestic services, such as waitresses, bartenders, couriers and messengers, employment services, social services and health care (primariy ambulatory health care services).

The conclusion is that if we believe the payroll jobs report, the United States is now an economy that only creates Third World jobs in lowly paid domestic services.

And yet this non-economy on the verge of collapse is said by the idiots in Washington to be a super-power.

What a total joke!

(Republished from PaulCraigRoberts.org by permission of author or representative)
 
• Category: Economics • Tags: Unemployment 
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  1. Subcontractors promised Employers of unionized workers that they could deliver a better product at a lower price than could be provided by unionized labor.

    But to accomplish this the subcontractor said “What I need is a flexible workforce. I need to be able to hire and lay off workers in response to the supply and demand created by contracts I procure. What I don’t need is to be locked into any long term contracts with my workers that would restrict my freedom to react to market forces”.

    By “flexible” what the subcontractor meant was that he would pay his employees minimum wage and that his jobs came with no benefits such as pension and health care.

    The workers, receiving little in the way of wages and feeling the ever-present threat of long-term job insecurity are unable to afford major purchases such as automobiles and home mortgages. They live from paycheck to paycheck.

    Unable to qualify for home mortgage loans from banks, the workers cannot start families and finally, unable to afford the commodities produced by his own labor, the workers life descends, along with the economy, in a self perpetuating death spiral.

    Today at dusk, a “park ranger” informed me that the park was closed (at 6 p.m.). His broken English was barely understandable. 30 years ago his would have been a unionized job that supported a family. Formerly the ranger would have been a graduate of a college-level program. The guy who spoke to me was driving his own truck and didn’t wear a uniform or even a hat with an insignia. The magnetic logo on the side of his truck didn’t identify him as an agent of the government; instead it bore the name of whatever contractor he worked for.

    We are supposed to believe that this is a job that Americans won’t do.

    The Laws of Supply and Demand indicate that when someone cannot be found to do a job, the employer trying to buy labor must raise his price until someone will work for those wages. If instead the employers conspire to undermine labor’s bargaining position by importing cheap, desperate workers who have no rights, then they have broken the social contract. Having broken the social contract, employers have no legitimate moral defense if and when former workers rebel. Distressed and depressed workers are unlikely to rebel.

  2. AC says:

    It’s a recovery-less recovery.

    When reality does not suit their political agenda, they substitute fantasy. The most disturbing thing about this, is that after a while, the politicians appear to come to believe their own propaganda, to the complete exclusion of reality.

    This is how empire disintegrates.

  3. I think that the Bureau of Labor Statistics does try to estimate the number of discouraged workers, but it’s ordinarily buried in their reports. I think that they also try to estimate the number of people with part-time jobs who would take full-time jobs if they could find one. Adding those two figures to the reported unemployment rate gives a better picture of the labor economy, and it isn’t a reassuring one. The job creation among age cohorts is a valuable statistic and a troubling one–young people aren’t finding jobs that give them the financial stability to start families.

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