January 10, 2014
Obanomics Update: Devastating Jobs Report As Labor Participation Rate Plunges To 1978 LevelsTopics: Political News and commentaries
The Obama economy created only 74,000 jobs in December, well below the 2013 average of 188,000 ... and well below the 197,000 economists expected for December.
This, as people not in the labor force soared to a record 91.8 Million - plunging the labor participation rate tp 1978 Levels:
Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%. And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.And And The Real Unemployment Rate Of 11.5% Means The Difference To Reported Has Risen To New Record:
The gross manipulation of the unemployment rate due to the plunging labor force participation rate and the soaring, record number of people that are not in the labor force is by now, we hope, clear to all. Yes, millions may be dropping out of the labor force because they can't find a job which somehow means the US economy is getting better, but sadly the US civilian, non-institutional population keeps rising, and hit a record 246.7 million in December. Which is why every month we show what the real unemployment rate would look like when normalized for the fudged participation rate by taking a 30 year average. Today, we find that the difference between the reported (6.7%) unemployment rate, and the implied using realistic assumptions for the US labor force, which remained at 11.5% where it has been ever since the start of the Second Great Depression, just hit a record high 4.8%. As did the spin, lies and obfuscation by the administration that "all is well."Much more here ...
Posted by Richard at January 10, 2014 10:32 AM
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