« | »

Hiring Down, But Jobless Rate Falls To 8.1%

From Reuters:

April hiring slows, jobless rate falls to 8.1 percent

Jason Lange
May 4, 2012

WASHINGTON (Reuters) – Employers decreased hiring for the second straight month in April but the unemployment rate still fell to 8.1 percent, giving mixed messages about the economy’s strength ahead of President Barack Obama’s November re-election bid.

Employers added 115,000 workers to their payrolls last month, the Labor Department said on Friday.

Hiring is slowing down, not speeding up, and yet the unemployment rate is going down?

But we know why. More and more people are just giving up looking for work, and so they are therefore no longer considered to be ‘unemployed’ under the DOL’s highly misleading U-3 measure.

In fact, the U-6, which is the broader measure of unemployment that includes those who have given up looking, remained unchanged in April, at 14.5%.

And, as Jim Pethokoukis points out, the unemployment rate would be 11% if US labor force the same size as when Obama took office. And if labor force participation had remained the same as it was in March, the unemployment rate would have risen to 8.4%.

The reading keeps fears alive that the U.S. economy is losing momentum and dampens hopes that a stretch of strong winter hiring signaled a turning point for the recovery.

The unemployment rate ticked a tenth of a point lower to a three-year low, as people left the work force. The jobless rate is derived from a separate survey of households, which showed a drop in the number of jobs in April.

Only in the Orwellian world of government statistics could the fact that more people gave up looking for work make the unemployment rate go down. In fact, these twisted numbers would make Stalin’s Politburo blush.

Still, the government revised upward its initial estimates for payroll growth in February and March by a combined 53,000. That left the six-month average of job growth at 197,000, nearly exactly where it would have been had April job growth come in as expected at 170,000…

So this number is even below the expectations of the expert economists. What a surprise.

This article was posted by Steve on Friday, May 4th, 2012. Comments are currently closed.

5 Responses to “Hiring Down, But Jobless Rate Falls To 8.1%”

  1. Petronius says:

    The amazing thing is that there are still people actively looking for work.

    The amazing thing is that everybody hasn’t given up looking by now.

    Four more years of Nerobama and everybody will either have given up or be working for the government. Surely then we will finally be within reach of the Liberal nirvana.

    By the way, 115,000 per month is about half the number needed just to keep pace with population increase from new immigrants.

    Fine analysis as always, Steve.

  2. untrainable says:

    What form of quantum math are these people using. The unemployed are like Shroedinger’s cat. As long as we don’t open the box to observe them, we can list their unemployment status as whatever we want. Or in the case of the Oblameless administration, whatever gets him re-elected.

  3. tranquil.night says:

    All there for the eyes that can see; the blind ones will suffer in secrecy.

  4. yadayada says:

    “The unemployment rate ticked a tenth of a point lower to a three-year low, as people left the work force.”

    this sentence is baffling.
    Steve’s highlighting is always on point, but. ask any liberal anywhere how this sentence makes any sense.
    what could they possibly answer?
    not just hypotheticals about how people who quit looking for work are no longer considered unemployed.

    but, unemployment goes DOWN as people leave work? gibberish.

  5. Tater Salad says:

    Here is how to bring down the unemployment rate which the Obama regime does every month. Sad…………..but true. ………………….. http://moonbattery.com/?p=11347 …………………. http://www.zerohedge.com/news/people-not-labor-force-soar-522000-labor-force-participation-rate-lowest-1981

« Front Page | To Top
« | »