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288K Jobs Added After 3 Weeks Higher Jobless Claims

From an unquestioning Associated Press:

U.S. economy adds a strong 288,000 jobs in April

May 2, 2014

WASHINGTON — The U.S. unemployment rate plunged in April to its lowest level since September 2008 as employers added 288,000 jobs, the most in two years. The figures are a clear sign that the economy is picking up after a brutal winter slowed growth.

How is this possible? We were just told by the AP yesterday that: "The number of Americans applying for unemployment benefits rose last week to the highest level since February.

And that: "The number of people applying for [new unemployment] benefits has risen three straight weeks."

How can so many people being going on unemployment and the economy still be adding so many jobs?

The Labor Department said Friday that the unemployment rate fell to 6.3 percent from 6.7 percent in March. But the drop occurred because the number of people working or seeking work fell sharply. People aren’t counted as unemployed if they’re not looking for a job.

So adding 288,000 jobs didn’t make the unemployment rate go down. It was people dropping out of the labor force. (Which also makes us doubt this new jobs number.)

Employers also added more jobs in February and March than previously estimated. The job totals for those two months were revised up by a combined 36,000.

Once again, how is that possible? We were just told that the first quarter GDP was a terrible 0.1%, as even the AP notes four paragraphs later:

The economy barely expanded from January through March, eking out an annual growth rate of just 0.1 percent, down from a 2.6 percent rate in the final three months of 2013…

None of this adds up. But, of course, no one would suggest that the Obama administration is cooking the books in the run up to the midterm elections.

They would never do that. (Except now we know they did so before the 2012 elections.)

All told, the positive news has led most economists to forecast a strong rebound in economic growth — to a 3.5 percent annual rate in the current April-June quarter. And growth should reach nearly 3 percent for the full year, up from 1.9 percent in 2013, they expect.

And never mind that we have been hearing these same rosy predictions from these same economists for five years now.

This article was posted by Steve on Friday, May 2nd, 2014. Comments are currently closed.

4 Responses to “288K Jobs Added After 3 Weeks Higher Jobless Claims”

  1. GetBackJack says:

    Wait, wait .. I read this morning that over 800,000 dropped out of the labor market last month ..

  2. captstubby says:

    WASHINGTON (Reuters) – U.S. job growth increased at its fastest pace in more than two years in April, suggesting a sharp rebound in economic activity early in the second quarter.
    Nonfarm payrolls surged 288,000 last month, the Labor Department said on Friday. That was the largest gain since January 2012 and beat Wall Street’s expectations for an increase of 210,000.
    March and February data were revised to show 36,000 more jobs than previously reported.

    While the unemployment rate dived 0.4 percentage point to a 5-1/2 year low of 6.3 percent, part of the decline was

    because hundreds of thousands of people left the labor force.

    While details of the bigger survey of employers were robust, the smaller and volatile household survey from which the unemployment rate is calculated was mixed, with household employment falling slightly.

    The labor force also declined by 806,000 people.

    “That is gargantuan decline,” said Tom Porcelli, an economist at RBC Capital Markets in New York.
    The labor force participation rate, or the share of working-age Americans who are employed and unemployed but looking for a job,
    fell 0.4 percentage point to 62.8 percent. That was the lowest level since last December.

    Some of the 1.35 million people who lost their longer-term unemployment benefits at the end of last December may have dropped out of the labor force last month.

    But a broad measure of unemployment, which includes people who want to work but have stopped looking and those working only part time but who want more work,
    fell to a 20-year low of 12.3 percent in April. It was at 12.7 percent in March.

    this is what is pass’s as good news in the Media.
    lots of if and maybe and revisions.

  3. BannedbytheTaliban says:

    “the most in two years” – that is the most since the last time the administration cooked the books in order to win re-election in 2012.

  4. Petronius says:

    “economy is picking up after a brutal winter slowed growth.”

    Lucky thing they don’t have weather in China.

    In China the sun always shines and the bluebirds always sing.

    You have to wonder what the economy would look like without the boom in oil and gas –– an energy boom which the regime has done its best to discourage.

    The economic Big Picture:

    1. All currencies are fiat, but none more so than the US dollar.

    2. All major world economies are mired in debt, but especially the former-USA which remains the world’s largest debtor nation. (Although China has the highest level of private debt and corporate debt.)

    3. Central banks are printing, buying time and trying to spur domestic production. Since 2009, the Fed has been printing money at an unprecedented rate (over $4 trillion in bond purchases).

    4. Healthy leadership is woefully lacking.

    5. Trend-lines are not encouraging.

    6. The former-US is experiencing another slowdown in manufacturing.

    7. Unemployment in the former-US remains high, with lowest workforce participation rate since 1978 (92.5 million workers not working).

    8. The Federal government is on the verge of another credit rating downgrade.

    9. The regime manipulates economic data, including CPI, GDP, unemployment, etc.; the media participates in this government deception by covering it up.

    10. The regime appears to be just buying time, wishing and hoping for some kind of positive outcome.

    11. The Fed cannot raise interest rates without damaging the economy, the stock and bond markets, and the ability of US and State governments to borrow and to support their existing debt loads.

    12. But racking up more and more debt to buy a false recovery cannot end well either.

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