There comes a certain point in time when manipulated data moves from that of subtle deception to the blatantly absurd, and today’s jobs report appears to have finally tilted those numbers fully into Bizzaro World. Coming in well below analyst expectations, new jobs created were a lackluster 173,000 bringing the unemployment rate to a level not even seen during the Reagan years when there were less people, and more real opportunities in the economy.
And while 173,000 new jobs, and a 5.1% unemployment rate may be seen as a victory to some who most often never look beyond the headline numbers, the sad fact is 261,000 vanished from even being counted in the job market bringing the labor participation rate to an all time record of 94 million Americans not only out of work, but not even recognized by the Bureau of Labor Statistics.
While the kneejerk headling scanning algos are focusing on the seasonally-adjusted headline monthly NFP increase which came in a worse than expected 173K, the presidential candidates – especially the GOP – are far more focused on another data point: the labor force participation rate, and the number of Americans not in the labor force. Here, they will have some serious ammo, because according to the BLS, the main reason why the unemployment rate tumbled to the lowest since April 2008 is because another 261,000 Americans dropped out of the labor force, as a result pushing the total number of US potential workers who are not in the labor force, to a record 94 million, an increase of 1.8 million in the past year, and a whopping 14.9 million since the start of the second great depression in December 2007. – Zerohedge
Yet even as the Obama administration tries to tell the American people how many jobs he has created since he took office following the 2008 Credit Crisis, the markets are not concerned about the fact that only 55% of all Americans eligible within the workforce (15-65) are actually employed and able to find paying work. All that matters is whether the Federal Reserve will decide to raise rates now that the manipulated unemployment rate is far below their announced baseline, and whether the equity bubble charade will collapse due to fear that the era of cheaper money and increased debt may be slowing down.
The real facts are that if you count unemployment the way they did prior to the Clinton administration, the amount of Americans out of work is at least 24%, and more than likely closer to 40%. And thanks to a welfare system that is fueled by debt and over one trillion dollars per year to provide the masses bread and circuses, a large majority of people in the United States who can’t find a real job will continue to be out of sight, and thus, out of mind.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.