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Economy Adds 146K Jobs, Yet Jobless Rate Falls

From an unquestioning Associated Press:

US economy adds 146K jobs, rate falls to 7.7 pct.

US economy adds 146K jobs; jobless rate falls to 4-year low of 7.7 percent; Sandy minor factor

By Christopher s. Rugaber | December 7, 2012

WASHINGTON (AP) — The U.S. economy added 146,000 jobs in November and the unemployment rate fell to 7.7 percent, the lowest since December 2008. The government said Superstorm Sandy had only a minimal effect on the figures.

And never mind that the news media have blamed the large weekly increases in new unemployment claims on Sandy for the last four weeks.

The Labor Department’s report Friday offered a mixed picture of the economy.

Hiring remained steady during the storm and in the face of looming tax increases. But the government said employers added 49,000 fewer jobs in October and September than it initially estimated.

Notice that now the the elections are over the AP feels it is safe to mention that the previous months’ numbers were revised down.

In fact, according to the Bureau of Labor Statistics, the number of jobs "for September was revised from 148,000 to 132,000, and the change for October was revised from 171,000 to 138,000."

Those are both big reductions. But October’s 33,00 is huge. How could the DOL be so far off? But it was surely just a coincidence, happening right before the elections like that.

And the unemployment rate fell to a four-year low in November from 7.9 percent in October mostly because more people stopped looking for work and weren’t counted as unemployed.

Yet another truth that can be mentioned now that Obama has been safely re-elected.

The report "is something of a mixed bag but, on balance, it’s a positive," said Paul Ashworth, an economist at Capital Economics…

What’s positive about it?

The job growth suggests that most employers aren’t yet delaying hiring because of the "fiscal cliff." That’s the combination of sharp tax increases and spending cuts set to take effect next year unless the White House and Congress reach a budget deal before then…

So the best is yet to come.

In November, retailers added 53,000 positions…

So more than one third of these new jobs was due stores to hiring for the holidays. How come that is not seasonally adjusted?

Still, overall manufacturing jobs fell 7,000. That was pushed down by a loss of 12,000 jobs in food manufacturing that likely reflects the layoff of workers at Hostess.

Sandy forced restaurants, retailers and other businesses to close in late October and early November in 24 states, particularly in the Northeast…

The storm held back consumer spending and income, which drive economic growth. Consumer spending declined in October and work interruptions caused by Sandy reduced wages and salaries that month by about $18 billion at an annual rate, the government said.

Still, many say economic growth could accelerate next year if the fiscal cliff is avoided. The economy is also expected to get a boost from efforts to rebuild in the Northeast after the storm.

Speaking of Sandy, this is what the Bureau of Labor Statistics said in their press release:

Hurricane Sandy

Hurricane Sandy made landfall on the Northeast coast on October 29th, causing severe damage in some states. Nevertheless, our survey response rates in the affected states were within normal ranges. Our analysis suggests that Hurricane Sandy did not substantively impact the national employment and unemployment estimates for November.

And yet here was how the news media was preparing us for bad news before this report came out. From the AP: "Sandy is thought to have slowed US hiring in Nov." From Reuters: "Superstorm Sandy to dampen payrolls."

Obviously, the media was crossed up. Even they didn’t think the administration would have the chutzpah to claim the unemployment rate is still going down. After all, the elections are over.

This article was posted by Steve on Friday, December 7th, 2012. Comments are currently closed.

3 Responses to “Economy Adds 146K Jobs, Yet Jobless Rate Falls”

  1. yadayada says:

    “Consumer spending declined in October and work interruptions caused by Sandy reduced wages and salaries that month by about $18 billion at an annual rate, the government said.”

    notice they don’t give us an actual number or even an estimate. they amortize the amount and tell us what it would look like over the year. that way they can still point at it any time they want and use it as an excuse for failure in the area.
    “Ohhh, Sandy caused an $18 billion drop in the economy in that area. anything we try is going to be difficult to make up for that!”
    but worry not – make up something they will, and it WILL fool the low infos that they have been rescued.

  2. imnewatthis says:

    I recently found out that at my local unemployment office, people line up at 7am (office opens at 8:30) and people “could be turned away” even after waiting all day. You can only go three days out of the week to apply for unemployment. It seems obvious to me this is helping keep unemployment numbers down.

  3. Tater Salad says:

    Unions……Good or bad! government website……..
    http://www.dol.gov/olms/regs/compliance/rrlo/lmrda.htm#.UMS2tXcXsis – Click onto the “Union Search” line first and go from there!


    How Unions kill jobs and growth of a nation:

    Teamsters Union dues are representing this action. The people who are
    non-Muslim get to work harder why the Muslims are praying on company time:

    Off the top pay:

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