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Jobs #s Up – But Jobless Goes To 9.9%?

From the ‘accent the positive, eliminate the negative,’ Associated Press:

Jobs up 290,000; jobless rate rises to 9.9 pct.

By JEANNINE AVERSA (AP)

May 7, 2010

WASHINGTON — Employers stepped up job creation in April, expanding payrolls by 290,000, the most in four years. The jobless rate rose to 9.9 percent as people streamed back into the market looking for work.

You see, it’s all those darn people looking for work who are causing the unemployment rate to go up.

The government says the hiring of 66,000 temporary government workers to conduct the census helped overall payroll growth last month. However, private employers added a surprisingly strong 231,000 positions last month, also the most since March 2006.

The unemployment rate rose from 9.7 percent in March to 9.9 percent in April, mainly because 805,000 jobseekers — perhaps feeling better about their prospects — resumed their searches for work.

Just out of curiosity, how does the Bureau of Labor Statistics know so many people have resumed their searches for work? We thought employment rates were largely based on the number of claims filed for unemployment. If so, how does filing for unemployment show that people have “resumed their searches for work”?

Weren’t a number of people knocked off the unemployment rolls in March, because of benefits running out in some states? And didn’t they “resume” their unemployment claims once these states got the additional money to extend jobless benefits from Congress?

Couldn’t that temporary loss of jobless benefits account for this seeming uptick in unemployment?

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

For the record, here are some excerpts from the AP’s “earlier story,” before the Bureau Of Labor Statistics released today’s figures:

WASHINGTON (AP) — Employers likely added to their payrolls in April, but Europe’s spreading debt crisis has jolted Wall Street and might dampen further job gains.

Signs have multiplied in recent weeks that the economic recovery in the United States has gained traction. Still, companies have been loath to rev up job creation.

Now, the debt crisis that erupted in Greece and sent stocks plunging Thursday adds to companies’ uncertainties. That could make them more cautious about hiring, economists warned.

The AP already had their excuses in place.

The nation probably added a net total of 200,000 jobs in April, economists predict.

If the Bureau Of Labor Statistics is to be believed, these economists were only off by nearly one third. (Payroll expanded by 290,000 jobs, instead of 200,000.)

That would be up from 162,000 added in March, the most in three years. But a big chunk of April’s net job gains — perhaps 120,000 — is expected to come from the government’s hiring of temporary census workers.

Funny, how this “chunk” of census hirers has been dialed down from 120,000 to 66,000.

By contrast, private companies — the backbone of the economy — probably added only around 75,000 jobs last month, economists say. If they’re right, that would mark a slowing from the 123,000 new jobs added in March.

Instead, according to today’s figures, private companies supposedly added a whopping 231,000. That is quite a large miscalculation for these economic mavens to have made.

The unemployment rate for April is expected to remain at a stubbornly high 9.7 percent, where it’s stood since January.

Isn’t it a little weird that, according to the Bureau Of Labor Statistics, the jobless rate went up two tenths of a percentage?

When the economists, while expecting nearly 1/3rd lower jobs numbers, predicted it would remain the same?

This article was posted by Steve Gilbert on Friday, May 7th, 2010. Comments are currently closed.

6 Responses to “Jobs #s Up – But Jobless Goes To 9.9%?”

  1. proreason

    More evidence that their statistics are virtually useless.

    Unemployment is still well over 20%.

    The only signal that it might change is simply time. After employers have cut payroll and wages to a certain level, they simply can’t do it anymore without going out of business. And since people need to eat and wear clothes, eventually the point of no return is reached.

    The real danger here is that the country can probably function with 80% employment. That means that the other 20% are supported by the 80%. That alone is a HUGE drop in lifestyles….even before you consider the massive loss of useful workers who are now useless gubamint employees.

    It could well be that 50% of the country is supporting 300 million people.

    And if you think it can’t possibly get worse then that…..you are dead wrong. This country would still be one of the wealthiest on the planet. It can get 10 times worse.

    Indeed, it appears to me that the last paragraph is exactly the plan.

  2. GetBackJack

    I’ll tell you where the jobs are.

    Bismark, ND.

    The Baaken Oil Field is so rich and oil development companies are drilling so determinedly that suddenly there’s no housing to be had, no employees to hire … they’re running out of essentials, etc etc. It’s like the gold rush on steroids.

    It’s like the Oklahoma land rush for oil patch jobs, which pay seriously good wages.

    But do we hear about it?

    Nooooo. Doesn’t fit the narrative.

    (Pssst – the J Sands field in Wyo/CO/NE may well hold even more than the Baaken)

  3. I don’t understand why the news bureaus would suggest that stocks should rise in the face of higher unemployment rates just because job numbers went up. Are there a bunch of half-bakes running the bureaus? I would think the average investor would be spooked most by the unexplained half-hour market melt yesterday (Thursday May 7) that was certainly more than someone hitting the B instead of the M key. This was most likely a case of market manipulation on someones part, either a hack, cyber-terror, or fraud. Until this question is resolved, there will continue to be distrust in the market. In the meantime, no amount of innane second guessing by a clueless media will spin a positive result.

    • proreason

      “Are there a bunch of half-bakes running the bureaus”

      You’re on to something there.

      But the real issue is your usage of the term “news bureaus”. Perhaps decades ago they reported the news. Now they are the propaganda department of the marxists. In their fantasy world, the math works out so that anything Dear Marxist Leader does is great. Jobs down. Wonderful !! Jobs up. Wonderful !! Jobs neutral. Wonderful !!

      And that will continue until Leninists begin shooting them. At that point, the enthusiasm of the survivors will then increase to 5 or 6 exclamation points.

  4. Petronius

    “the debt crisis that erupted in Greece and sent stocks plunging Thursday . . . .”

    A good example of what happens when socialists run out of other people’s money.

  5. Perdido

    Hmm. The word ‘surprised’ wasn’t to be found in the entire article.




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