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    Another bad unemployment report

    Another bad unemployment report

    Via The Wall Street Journal:

    The U.S. unemployment rate was rose to 8.3% in July and a broader measure ticked up to 15%, even as the economy added 163,000 jobs. Why the increase?

    The key reason is because the two numbers come from separate reports. The number of jobs added — the 163,000 figure — comes from a survey of business, while the unemployment rate comes from a survey of U.S. households. The two reports often move in tandem, but can move in opposite directions, especially in months such as July where there are big seasonal issues at play. This month, the household survey was telling a darker tale than the poll of establishments.

    The unemployment rate is calculated based on people who are without jobs, who are available to work and who have actively sought work in the prior four weeks, and that number was up by 45,000 in July….

    This month 150,000 people left the labor force, lowering what is known as the participation rate. That can lead to a drop in the unemployment rate if people previously unemployed leave the labor force. The drop in the labor force even as the number of unemployed grows can be worrying, and indeed there was an increase in discouraged workers in July.

    A further worrying sign came in the count of persons counted as employed, which fell by 195,000 last month.

    James Pethokoukis notes (w/chart below):

    Only in a world of lowered, New Normal expectations was the July jobs report anything less than another disaster for U.S. workers. Nonfarm payrolls rose 163,000 last month as the unemployment rate rose to 8.3%. In addition, employment for May and June was revised by 6,000 jobs.

    – Not only is the 8.3% unemployment rate way above the 5.6% unemployment rate that Team Obama predicted for July 2012 if Congress passed the $800 billion stimulus plan. It’s way above the 6.0% unemployment rate they predicted if no stimulus was passed.

    – This continues to be the longest stretch of 8% or higher unemployment since the Great Depression

    – If the labor force participation rate was the same as when Obama took office in January 2009, the unemployment rate would be 11.0%.

    – Even if you take into account that the LFP should be declining as America ages, the unemployment rate would be 10.6%.


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    […] Utter, Total, Complete Fail Posted on August 3, 2012 1:30 pm by Bill Quick » Another bad unemployment report – Le·gal In·sur·rec·tion […]

    Estragon | August 3, 2012 at 4:50 pm

    CNBC is reporting the actual figures, too:

    “Failed Obama policies” should be the new mantra.

    KBmessenger | August 3, 2012 at 4:54 pm

    A good Friday evening fellow Americans! The plutocrats send their best to all.

    Well, it is my pleasure to report that the effort is proceeding according to plan. We have the major TV networks and cable stations and most print media within our fold. Legislatures at the state and national levels are, at our behest, not moving forward on measures to improve the employment situation. Disdain for the government has reached fever pitch which will allow our people to act freely. Voter ID laws are being implemented in more states everyday which is gonna allow Governor Romney to win the election. The plutocracy is holding back between $3 and $6 trillion dollars.

    Obama is crippled. He will not be re-elected if the plutocracy has its way and it will! Governor Romney is our candidate not by accident and his challengers were not eliminated by accident. And, Obama’s defeat will not be by accident.

    A new brighter day and future for America is coming in January 2013. Rejoice!

    theyjustcantstop | August 3, 2012 at 5:01 pm

    just a personal note,money is important in our lives,some people have more than others,and invest accordingly.
    if you are more dependent on for fincial stability for day to day requirements,i plead with you to either do some personal research,or if you trust someone that’s finacially educated talk to them.
    find out why the worst possible fiscal news can come out in a two week period,and some money news shows,facts are so much different than others.
    i just don’t want people to be in the same situation as 2008,when the truth was there but was not widely reported,there were good people who were fincially educated that tried warning people,and were others that were insider educated who made millions, and billions.
    i’m not a finacial adviser by any means,but i found the new media and researched and read,i personally trust very few of the figures that get the headlines.

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