« | »

AP: Jobless Down Because More Given Up

The Associated Press finally admits something we have been saying for a year and a half:

More job seekers give up, reducing unemployment

By Paul Wiseman, AP Economics Writer
June 2, 2011

WASHINGTON – Where did all the workers go?

The labor force — those who have a job or are looking for one — is getting smaller, even though the economy is growing and steadily adding jobs. That trend defies the rules of a normal economic recovery.

Nobody is sure why it’s happening. Economists think some of the missing workers have retired, have entered college or are getting by on government disability checks. Others have probably just given up looking for work

Notice how the AP makes it sound like we would be having a robust economy if it weren’t for those darned "missing workers," who are making Mr. Obama look bad.

By the government’s definition, if you quit looking, you’re no longer counted as unemployed. And you’re no longer part of the labor force.

We still haven’t been able to find the official definition of when one is considered to have "quit looking." Naturally, the AP would not think to report or even ask about the official policy here.

Since November, the number of Americans counted as employed has grown by 765,000, to just shy of 139 million. The nation has been creating jobs every month as the economy recovers. The economy added 244,000 jobs in April.

But the number of Americans counted as unemployed has shrunk by much more — almost 1.3 million — during this time. That means the labor force has dropped by 529,000 workers.

How is it possible for the number of employed to have "grown by 765,000" since November, when during the same period "529,000 workers" have dropped out of the system? That sounds like ‘Voodoo unemployment numbers’ to us.

The percentage of adults in the labor force is a figure that economists call the participation rate. It is 64.2 percent, the smallest since 1984. And that’s become a mystery to economists. Normally after a recession, an improving economy lures job seekers back into the labor market. This time, many are staying on the sidelines.

You see? We would be enjoying a wonderful recovery if it just weren’t for all those lazy shirkers.

Their decision not to seek work means the drop in unemployment from 9.8 percent in November to 9 percent in April isn’t as good as it looks.

If the 529,000 missing workers had been out scavenging for a job without success, the unemployment rate would have been 9.3 percent in April, not the reported rate of 9 percent. And if the participation rate were as high as it was when the recession began, 66 percent, in December 2007, the unemployment rate could have been as high as 11.5 percent.

What a shocking thing for the Associated Press to finally admit. Luckily, they buried it about as far as possible down in this article.

A majority of the 42 economists in the latest Associated Press quarterly economic survey said they expect the labor force participation rate to start growing consistently before the year ends. Twelve don’t expect it to happen until next year at the earliest. Five think it never will

Mind you, these are the same economists who have been surprised week after week for more than a year and a half that the unemployment rate hasn’t gone down. And they will probably be surprised again, later today.

This article was posted by Steve on Thursday, June 2nd, 2011. Comments are currently closed.

3 Responses to “AP: Jobless Down Because More Given Up”

  1. Right of the People says:

    “How is it possible for the number of employed to have “grown by 765,000” since November, when during the same period “529,000 workers” have dropped out of the system? ”

    Do ya think maybe 500K of those 765,000 might have been seasonal workers? I imagine with Barry the Bunglers economiks (as opposed to economics) experts way of tallying if you worked for even a day, that is a job made.

  2. Liberals Demise says:

    Cerebral Kenyan E~ko~nom~iks is what Czars hiding behind dingleBarrys
    petticoat call it. I am in shock that the boot lickers at AP even run any numbers
    suggesting that the percentage of out of work Americans may be higher than the halfrican-Americans’ boot lickers claim.

    Expect the unexpected with these despots in average Americana skin.

  3. untrainable says:

    Well if that’s how things work in Oblamer’s Amerika, then the solution is simple. If everyone who is currently unemployed would just stop looking for work, we would have full employment. That would solve everything… right? Oblamer could go into the 2012 election with full employment and we all could get back to the important issues of the day. Amnesty for all illegals, shutting down the oil and coal industries for good, printing enough money to take care of that pesky national debt, finishing up with the ruination of the medical insurance industry, raising taxes on the rich (anyone who still has a job) to a reasonable 80 or 90%, and finally pushing gas prices up to $10/gal where they belong.

« Front Page | To Top
« | »