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More Jobs Added Than Sept, But Rate Goes Up

From the whirling dervishes at the Associated Press:

US economy adds 171K jobs; rate rises to 7.9 pct.

By CHRISTOPHER S. RUGABER | November 2, 2012

WASHINGTON (AP) — U.S. employers added 171,000 jobs in October, and hiring was stronger in August and September than first thought. The solid job growth showed that the economy is strengthening slowly but consistently.

Putting aside the AP’s editorializing, this is a higher number of jobs than the BLS reported last month, when they claimed that the economy in September created 114,000 new jobs. And yet the unemployment rate went down .3%, from 8.1% to 7.8%.

How is it possible to add even more jobs and have the unemployment rate go up .1%? This is voodoo statistics.

The unemployment rate rose to 7.9 percent from 7.8 percent in September, mainly because more people began looking for work.

The government uses a separate survey to calculate the unemployment rate, and it counts people without jobs as unemployed only if they’re looking for one.

The AP only points out this peculiarity when they are trying to defend the jobless rate rising. When the rate goes down because people have given up, they soft pedal this detail.

Friday’s report was the last major snapshot of the economy before Tuesday’s elections. It’s unclear what political effect the report might have. By now, all but a few voters have made up their minds, particularly about the economy, analysts say.

And never mind that the AP and the rest of the news media have been telling us for months that the only thing that will matter come election day is that the jobless rate is trending in the right direction.

But now that it is trending in the wrong direction, nobody cares.

Since July, the economy has created an average of 173,000 jobs a month. That’s up from 67,000 a month from April through June.

And never mind that the administration promised us that we would begin creating 500,000 jobs a month, back in April 2010.

Still, President Barack Obama will face voters with the highest unemployment rate of any incumbent since Franklin Roosevelt.

But we thought all that mattered was the trend?

The work force — the number of people either working or looking for work — rose by 578,000 in October. And 410,000 more people said they were employed.

The influx of people seeking jobs "could be a sign that people are starting to see better job prospects and so should be read as another positive aspect to the report," said Julia Coronado, an economist at BNP Paribas…

Or it could be that the federal extended unemployment benefits have run out in most states.

Friday’s report included a range of encouraging details.

The government revised its data to show that 84,000 more jobs were added in August and September than previously estimated. The jobs gains in October were widespread across industries. And the percentage of Americans working or looking for work rose for the second straight month…

What a coincidence. Also notice that the AP points out revisions when they are for the good. But never reports them when they are for the worse.

The economy has added jobs for 25 straight months. There are now 580,000 more [sic] than when Obama took office…

Does anyone believe this? Even the lowest of the low information voter?

Meanwhile, here are some other numbers from the Bureau of Labor Statistics press release today, that won’t get much attention from our media guardians:


Friday, November 2, 2012

Both the unemployment rate (7.9 percent) and the number of unemployed persons (12.3 million) were essentially unchanged in October, following declines in September.

So the number of unemployed is the same as it was. So why was the unemployment rate lowered last month?

Among the major worker groups, the unemployment rate for blacks increased to 14.3 percent in October, while the rates for adult men (7.3 percent), adult women (7.2 percent), teenagers (23.7 percent), whites (7.0 percent), and Hispanics (10.0 percent) showed little or no change…

But blacks will vote for Obama, anyway.

In October, the number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.0 million. These individuals accounted for 40.6 percent of the unemployed.

The employment-population ratio was essentially unchanged at 58.8 percent

Again, why was the unemployment rate lowered last month?

In October, 2.4 million persons were marginally attached to the labor force, little different from a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey

These are the real hardcore unemployed, who are not even counted as unemployed anymore.

This article was posted by Steve on Friday, November 2nd, 2012. Comments are currently closed.

2 Responses to “More Jobs Added Than Sept, But Rate Goes Up”

  1. Petronius says:

    I’m confused.

    If Romney gets elected, will he have inherited the economic mess from Nerobama or Bush?

  2. Right of the People says:

    From Bush of course. Obi-I-Won is the Teflon president, only the good stick to him.

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