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Hiring ‘Jumps’ – Jobless Rate Unchanged

From an unquestioning Reuters:

October hiring jumps but jobless rate unchanged

November 5, 2010

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. employment increased far more than expected last month as private companies hired workers at the fastest pace since April, a sign the sluggish economy is starting to tick up.

Yessirree Bob, ‘prosperity is just around the corner.’

Nonfarm payrolls rose a solid 151,000 in October, the first increase since May, the Labor Department said on Friday. A 159,000-jump in private employment more than offset a 8,000 drop in government payrolls…

And yet the unemployment rate did not change on iota. How is that possible?

Concern over the anemic job market was a factor behind the Federal Reserve’s decision this week to pump an additional $600 billion into the economy through government bond purchases to push interest rates down further and stimulate demand.

The U.S. central bank, which cut overnight interest rates to near zero in December 2008, had already bought about $1.7 trillion in government debt and mortgage-linked bonds.

Which is something we are only hearing about now. Why is that?

October’s strong jobs growth, however, failed to make a dent in the lofty unemployment rate, which remained at 9.6 percent for a third straight month, in line with market expectations…

If this "growth" doesn’t even lower the unemployment rate by one tenth of a percentage point, how can it be called a "solid" and "strong" "jump"?

(Of course this is the same news media that called 5.1% unemployment under Mr. Bush a "recession.")

Analysts say the economy needs to create at least 125,000 jobs a month to start ratcheting the high unemployment rate down so four months of solid private hiring above 100,000 monthly was encouraging.

Er, it should be clear even to Reuters analysts that the jobs number has to be higher than 125,000, since 151,000 new jobs did not lower the unemployment rate one bit.

Indeed, we used to be told that the magic jobs number was 150,000. (And isn’t it funny how close 151,000 is to 150,000?) But it still didn’t do the trick.

By the way, speaking of numbers, weren’t we were assured by no less an authority than Vice President ‘Bite Me’ that the economy would be adding 500,000 a month – starting last spring?

Whatever happened to him?

This article was posted by Steve on Friday, November 5th, 2010. Comments are currently closed.

17 Responses to “Hiring ‘Jumps’ – Jobless Rate Unchanged”

  1. proreason says:

    hmmmmm

    I could swear we’ve been told it takes at least 200,000 new jobs per month just to meet the demand of new workers entering the market. I mean really, there must be at least 199,000 new liberal arts graduates every month just panting for a job in gubamint now that they have been fully indoctrinated to marxism and statism.

    So where did this 125,000 number come from?

    haha….rhetorical question.

    • Petronius says:

      pro : “I could swear we’ve been told it takes at least 200,000 new jobs per month….”

      Yes, indeed — back in August AP was telling us that 200,000 was the tread-water number.

      http://sweetness-light.com/archive/july-unemployment-rate-remains-at-9-5

      151,000 means we are losing ground in the unemployment battle. In fact, that number may be insufficient to absorb new entrants from immigration (all sources, documented and undocumented).

      Official unemployment is now over 14.65M — up from 14.2M in July. (Looks like that recovery summer didn’t work out so well after all.)

      To put half of those people back to work between now and the 2012 election, you would need to create more than 305,000 jobs per month every month. When new immigrants are added to the mix, you would need to create well over 400,000 jobs per month. This does not include new entrants to the workforce from natural (internal) population growth.

      The biggest gamble in US economic history occurred on Wednesday, when the Fed announced $1 trillion of QE2. In other words, the printing presses are ratcheted up full blast.

      The US dollar is going down the toilet.

      We are heading into uncharted waters.

    • tranquil.night says:

      Great information Petronius, thank you.

      We’re not necessarily in uncharted waters though, we’ve just entered a channel rigged every 3 meters with land mines. The few nations that’ve tried this channel, well their wreckage is still spewn all across the world and their grandchildren just finished paying off the debt.

      We are talking about the United States Dollar though, in the era of economic Globalism 3.0. Whatever History has shown to happen previously, we are not going to permit that to be allowed to amplify by ten-thousand now. Somebody get Lil’ Satan, Barack Obama, Ben Bernanke, Lil’ Timmy Geithner, off our freaking money supply. Freeze those accounts and audit them!!

    • BigOil says:

      It is pretty well understood what happens when the printing presses start churning out currency. All the currency is devalued, sometimes dramatically (see zimbabwe).

      If you are a responsible saver/investor, you are punished. If you are a Democrat – part of the recipient class – you do not give a rip because your government check just gets bigger. This serves as a two-fer for Marxists. They can destroy an economy and redistribute wealth at the same time.

      Our only way out of Barry, Timmy, and Benny’s economic death spiral is the new group of conservatives in congress pushing through massive spending and tax cuts (and put the screws to the federal reserve). We still have a shot to grow our way out of this Marxist mess.

    • tranquil.night says:

      “If you are a responsible saver/investor, you are punished. If you are a Democrat – part of the recipient class – you do not give a rip because your government check just gets bigger. This serves as a two-fer for Marxists. They can destroy an economy and redistribute wealth at the same time.”

      Perfect. Just made the complex simple.

    • Petronius says:

      BigOil : “If you are a responsible saver/investor, you are punished.”

      I am an old-age pensioner who lives off my investments.

      This week I put in sell orders on some of my long-term muni bonds. This was a painful decision because they are very high quality paper, issued by financially strong red States and counties, AAA and AA+, non-callable, high interest tax-free and AMT-free.

      Bonds like these don’t come onto the market every day.

      Normally dealers would jump at the chance to own bonds like these. But the bids I got were just awful. Absolutely terrible. It looks like the wheels are beginning to come off the muni bond market.

      You can’t fight the Fed. The Fed has decided to inflate the money supply and monetize the public debt. When inflation becomes obvious, bond prices are going to sink.

      Currently the CPI shows inflation at 2%, which is reasonable. However, this is largely due to low cost for housing. If we use the old 1980s CPI methodology (using a basket of goods), real inflation is currently at 8.5% and rising sharply.

      Gold is up 20% this year. Silver is up over 40% on the year, and 10% this week alone. When Nerobama took office silver was $5 and change; today it is $26.70. The precious metals are setting new highs almost daily. The Swiss franc and Australian dollar are at all-time highs against the US dollar.

      The metals and foreign currencies are overdue for correction, but in the meantime they are sending us a very strong message.

      Oil is over $86 per bbl and rising. Petroleum products are up 13% year-over-year, and home heating oil is up 18% with winter weather still ahead.

      Copper is near a record high.

      Grains have increased 33% year-over-year.

      The prices of medical care, farm products, food, oil, base metals, and other commodities are all moving higher.

      The 30-year interest rate began moving up 2 or 3 weeks ago.

      From my point of view, I see this regime as waging all-out war on seniors . . . Obamacare, Medicare cuts, repeal Bush tax cuts, death taxes, massive debt-creation, and now massive money-creation and inflation.

      You young guys can muddle through. But seniors who live on fixed incomes are going to be clobbered.

      It is always difficult to predict the timing of economic events, but I am estimating the winter of 2011-2012 as the time when helter-skelter comes down.

    • proreason says:

      “Obamacare, Medicare cuts, repeal Bush tax cuts, death taxes, massive debt-creation, and now massive money-creation and inflation.”

      I’m not as rosily optimistic.

      The 2008 melt-down was deliberate theft from people with small amounts of capital. The whole thing played out so as to drive their savings down to the point where they had to bail out to have a chance to survive, at the bottom. Investment interest rates have been close to 0 every since. Moreover, every aspect of inflation works against older people. Crap and Tax and the stealth replacemen for it hurt seniors more than others because utility costs are a greater % of a senior’s budget. Older people also don’t have the time or resiliency to recover from financial disasters….it’s just nature. Now there is talk of 401K confiscation. Capital Gains taxes hurt the people who need gains the most, i.e., seniors. Social Security payments will be flat for 2 years. Medicare, supplement payments, and health care costs skyrocket….service craters.

      If there is a term stonger than all-out war, then this is it.

    • Rusty Shackleford says:

      “The US dollar is going down the toilet.”

      And, though I hate to say it, I believe it is all intentional. All part of the punishment for the US for “being so greedy” and also to european-ize us into needing the government for everything including toilet paper.

      The socialists in our government are determined to take everything away from us, including and especially our financial freedom. In this regard, they may not be so ignorant of history for, when you create a serf class, you have unquestionable, absolute rule over them.

      The Cloward/Piven strategy appears to work but the overall outcome is far from certain. For, once they completely destroy the value of the dollar, who’s to say that the citizens won’t come up with an alternative to money? Then, all bartering services would have to be regulated by GovCo. as well. And on and on. You can’t squeeze a balloon and keep it from expanding on the other side…and if you try, you end up bursting the balloon.

      But I firmly believe this all fits with their blueprint for how to destroy the US from within. What the moose-limbs tried to do by flying jets into the WTC, our own government is doing with relative ease.

  2. Right of the People says:

    “By the way, speaking of numbers, weren’t we were assured by no less an authority than Vice President ‘Bite Me’ that the economy would be adding 500,000 a month – starting last spring?

    Whatever happened to him?”

    To quote Otter from Animal House after they trashed Flounder’s brother’s Lincoln.
    “Face it Flounder you f**ked up, you trusted us?”

  3. Liberals Demise says:

    Democrat arithmetic?
    Johnny has 2 apples for sale at $1.00 per apple.
    Hanoi Jane says she’ll buy both apples but only has a $5.00 dollar bill.
    Johnny hands Hanoi Jane the 2 apples and takes the $5.00 bill from her hand.
    Johnny turns to walk away and says to Hanoi that she can pay him $3.00 later.

  4. Astravogel says:

    “…drinkin’ that sweet bubble up,
    and eatin’ that rainbow pie!”

  5. eaglewingz08 says:

    So the uptick in employment started to occur when it became clear even through the liberal pollsters that the republicans were going to take back the House and make strong gains in the Senate, thereby putting a brake on the democraps’ anti business agenda. Very interesting.

  6. eaglewingz08 says:

    So the uptick in employment started to occur when it became clear even through the liberal pollsters that the republicans were going to take back the House and make strong gains in the Senate, thereby putting a brake on the democrats’ anti business agenda. Very interesting.

  7. canary says:

    oops. double posted. Example is college grants & loans.
    The part that passed with the health care bill, doesn’t go into effect til 2014. But, some very recent changes is you must have a higher grade average than it used to be. Not have undergraduate years (as in you are forced to take loans your first & second year?) and a big issue is that your major is in science, math, & “foreign language”.
    Lucky, I told my son when Obama said we will have a free Universal education from birth to college, I told him that meant when you average impoverished countries where there is no education, or women can’t go to school. I also told him, that there will be no money left when you start college, so you will have to make higher grades than the average to get scholarships or any aid. Add ACT scores are more important than grade averages to colleges.

  8. canary says:

    I’ve been noticing Obama has been making many false “present” sense statements in place of his “future” sense statements. It’s one thing to promise & not keep promises, but he keeps saying people aren’t focusing on the positive. “Now we have…this, we’ve made this..etc.” Voters should be able to see more clearly in the next 2 years that he’s a windbag.

    • proreason says:

      Everything that he says from the telepromter is designed so that he can interpret it multiple ways, depending on what happens, so very few of his formal remarks illustrate the true intent.

      It is only when he is forced to speak extemporaneously that the truth comes out. Going forward from here, there is likely to be less and less of that. His cabinet officials will probably do most of the talking in the next 2 years, to insulate the Moron from the risk of his own stupidity.

    • canary says:

      Pro, Obama believes his speech impediment or “style of communicating” makes people feel sorry for him, and put the media in his pocket.

      Note how he writes and I quote his own “disclaimer” to this quote by him in the “The Audacity of Hope” by Barack Obama. pg 120

      “A disclaimer here: For a three-year span, from the time that I announced my candidacy for the Senate to the end of my first year as a senator, I was the beneficiary of unusually – and at times underdeservedly
      – positive press coverage. No doubt some of this had to do with my status as an underdog in my Senate primary, as well as my novelty as a black candidate with an exotic background. Maybe it also had something to do with my style of communicating, which can be rambling, hesitant, and overly verbose (both my staff and Michelle often remind me of this), but which perhaps finds sympathy in the literary class.”

      “…,but which perhaps finds sympathy in the literary class.”

      not sure what the “literary class” has to do with listening to his hesitation speech impediment, but the reading is painful and makes me sick. I’d like to hear his auditory form of this statement. He is the vainest person on the planet of the earth.


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