Nearly At ‘Full Employment’? 10 Reasons Why The Unemployment Numbers Are A Massive Lie

Michael Snyder Freedom Outpost
March 10, 2015

On Friday, we learned that the official “unemployment rate” has fallen to 5.5 percent. Since an unemployment rate of 5 percent is considered to be “full employment” by many economists, many in the mainstream media took this as a sign that the U.S. economy has almost fully “recovered” since the last recession. 

In fact, according to the Wall Street Journal, some Federal Reserve officials believe that “the U.S. economy is already at full employment."  But how can this possibly be?  It certainly does not square with reality.  People that have been struggling with unemployment for years and that still cannot find a decent job. 

So what in the world is going on?  How can the government be telling us that we are nearly at “full employment” when so many people can’t find work?  Could it be possible that the government numbers are misleading?

The official “unemployment rate” (U3) has become so politicized and so manipulated that it is essentially meaningless at this point.  The following are 10 reasons why…

#1 Since February 2008, the size of the U.S. population has grown by 16.8 million people, but the number of full-time jobs has actually decreased by 140,000.


#2 The percentage of working age Americans that have a job right now is still about the same as it was during the depths of the last recession.  Posted below is a chart that shows how the employment-population ratio has changed since the beginning of the decade.  Does this look like a full-blown “employment recovery” to you?…

#3 The primary reason for the decline in the official “unemployment rate” is the fact that the government now considers millions upon millions of long-term unemployed workers to “no longer be in the labor force."  Just check out the following numbers…

The number of Americans participating in the labor force has been on a decline for the past few years. Nearly 33 percent of the Americans above age 16 are not part of the workforce, the highest number since 1978. The Bureau of Labor Statistics (BLS) report issued recently has found 92,898,000 Americans above age 16 not a part of the labor force of the country as on February 2015. When President Obama took over the office in January 2009, nearly 80,529,000 Americans were not a part of the labor force. The number has increase by nearly 12 million over the last few years.

#4 Over the past couple of years, the labor force participation rate in this country has been hovering near mutli-decade lows…

The labor force participation rate hovered between 62.9 percent and 62.7 percent in the eleven months from April 2014 through February, and has been 62.9 percent or lower in 13 of the 17 months since October 2013. Prior to that, the last time the rate was below 63 percent was 37 years ago, in March 1978 when it was 62.8 percent, the same rate it was in February.

#5 When you add the number of “officially unemployed” Americans (8.7 million) to the number of Americans “not in the labor force” (92.9 million), you get a grand total of 101.6 million working age Americans that do not have a job right now.  Does that sound like “full employment” to you?

#6 The quality of our jobs continues to decline.  Right now, only 44 percent of U.S. adults are employed for 30 or more hours each week.

#7 Millions upon millions of Americans have been forced to take part-time jobs because that is all they can find, and wages for American workers are at depressingly low levels.  The following numbers come directly from the Social Security Administration…

-39 percent of American workers make less than $20,000 a year.

-52 percent of American workers make less than $30,000 a year.

-63 percent of American workers make less than $40,000 a year.

-72 percent of American workers make less than $50,000 a year.

#8 The average duration of unemployment for an unemployed worker is still about twice as long as it was just prior to the last recession.

#9 Most Americans feel as though the Obama administration has done little to nothing to help the middle class.  Just consider the following poll numbers…

According to a new poll by the Pew Research Center, Americans see government policies under the Obama administration as having mostly benefited wealthy people, large corporations and financial institutions.

Seventy-two percent of respondents said government policies have done little or nothing to help the middle class, and 65 percent said they have done nothing to help the poor. Sixty-eight percent said the policies have done nothing to help small businesses.

Meanwhile, 45 percent said the policies have done a “great deal” to help large banks and financial institutions, 38 percent say they have helped large corporations, and 36 percent say they have helped the wealthy.

#10 If the unemployment rate was calculated honestly, we would all be talking about the horrific “unemployment crisis” that we were currently enduring.  According to John Williams of shadowstats.com, the real unemployment rate in the United States right now is above 23%.

U.S. politicians and the corporate mainstream media are attempting to convince us that everything is just fine. But what they are telling us simply does not match the cold, hard reality on the streets.

And since the talking heads on television are proclaiming that we are nearly at “full employment," that just makes millions upon millions of Americans that can’t seem to find work no matter how hard they try feel even worse than they already do.

If jobs are “easy to get," then those that are chronically unemployment must have “something wrong” with them.  That is the message that we are being given.  If the mainstream media says that unemployment has gone way down, then anyone that is still unemployed must be really “lazy," right?

When you are unemployed for an extended period of time, it can really suck the life right out of you.  It can be really tempting to believe that you are viewed as a failure by your family and friends.  And for the government to lie to us like this just makes things even harder.

If you are unemployed and can’t find a job right now, I want you to understand that you are caught in the midst of a long-term downward economic spiral which is going to get a lot worse.

When the government tells you that we are in a “recovery," they are lying to you. And when the government tells you that things are about to get a lot better, they are lying to you.

Source

More Bad News From The Jobs Front

Paul Craig Roberts

The Bureau of Labor Statistics headline this morning reads: “Payroll employment increases by 248,000 in September; unemployment rate declines to 5.9%.”
How can this be? As I reported yesterday, US corporations are investing in buying back their own stocks, not in new business ventures that produce new jobs.

According to the Census Bureau’s Poverty Report, US real median family income has declined to the level of twenty years ago.

Consumer credit and real retail sales are not growing. Construction is limited to rental units. Construction shows 16,000 new jobs, half of which are “specialty trade contractors” or home remodelers.

The payroll jobs report lists 35,300 new jobs in retail trade. How is this possible when J.C. Penny’s, Macy’s, Sears, and the dollar store chains are in trouble and closing stores, and shopping centers are renting space by the day or hour?

At a time when there is a surfeit of office buildings and only 500 new jobs in “heavy and civil engineering construction,” the jobs report says 6,000 new jobs have been created in “architectural and engineering services.” What work are these architects and engineers doing?

The 4,900 computer systems jobs, if they exist, are likely short-term contracts from 6 to 18 months. Those who have the jobs are not employees but “independent contractors.”

The payroll jobs report gives an unusually high number–81,000–of “professional and business services” jobs of which 60,000 are “administrative and waste services,” primarily “temporary help services.”
“Health care and social assistance” accounts for 22,700 of the new jobs, of which 63 percent consist of “ambulatory health care services.”

“Performing arts and spectator sports” gave the economy 7,200 jobs, and 20,400 Americans found employment as waitresses and bartenders.

State governments hired 22,000 people.

Let’s overlook the contribution of the discredited “birth-death model” which overstates on average the monthly payroll jobs by at least 50,000, and let’s ignore the manipulation of seasonal adjustments. Instead, let’s assume the numbers are real. What kind of economy are we looking at?

We are looking at the workforce of a third world country with the vast bulk of the jobs in low-pay domestic service jobs. People working these part-time and independent contractor jobs cannot form a household or obtain a mortgage.

As John Titus, Dave Kranzler and I have shown, these jobs are filled by those aged 55 and over who take the low paying jobs in order to supplement meager retirement incomes. The baby boomers are the only part of the US labor force whose participation rate is rising. Of the claimed new jobs in September, 230,000 or 93 percent were jobs filled by those 55 and older. Employment of Americans of prime working age (25-54) declined by10,000 jobs in September from the August level.

As the US labor force continues its transition from first world to third world, real median family income will continue to decline. Ladders of upward mobility will continue to be dismantled, and income and wealth will continue to concentrate in the pockets of the One Percent. America is truly a country run for the few.

Virtual Economy’s Phantom Job Gains Are Based on Statistical Fraud

And More Fraud Is in the Works
July 7, 2014 |
Paul Craig Roberts

Washington can’t stop lying. Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.

In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams (www.ShadowStats.com) wrote that the 288,000 June jobs and 6.1% unemployment rate are “far removed from common experience and underlying reality.” Payrolls were overstated by “massive, hidden shifts in seasonal adjustments,” and the Birth-Death model added the usual phantom jobs.

Williams reports that “the seasonal factors are changed each and every month as part of the concurrent seasonal-adjustment process, which is tantamount to a fraud,” as the changes in the seasonal factors can inflate the jobs number. While the headline numbers always are on a new basis, the prior reporting is not revised so as to be consistent.

The monthly unemployment rates are not comparable, so one doesn’t know whether the official U.3 rate (the headline rate that the financial press reports) went up or down. Moreover, the rate does not count discouraged workers who, unable to find a job, cease looking. To be counted among the U.3 unemployed, the person must have actively looked for work during the four weeks prior to the survey.  

The U.3 rate(the headline rate that the financial press reports)  automatically declines as people who have been unable to find jobs cease trying to find one and thereby cease to be counted as unemployed.

There is a second official measure of unemployment that includes people who have been discouraged for less than one year. That rate, known as U.6, is seldom reported and is double the 6.1% rate.
Since 1994 there has been no official measure than includes discouraged people who have not looked for a job for more than a year.  

Including all discouraged workers produces an unemployment rate that currently stands at 23.1%, almost four times the rate that the financial press reports.

What you can take away from this is the opposite of what the presstitute media would have you believe. The measured rate of unemployment can decline simply because large numbers of the unemployed become discouraged workers, cease looking for work, and cease to be counted in the U.3 and U.6 measures of the unemployment rate.

The decline in the employment-population ratio from 63% prior to the 2008 downturn to 59% today reflects the growth in discouraged workers. Indeed, the ratio has not recovered its previous level during the alleged recovery, an indication that the recovery is an illusion created by the understated measure of inflation that is used to deflate nominal GDP growth.

Another indication that there has been no recovery is that Sentier Research’s index of real median household income continued to decline for two years after the alleged recovery began in June 2009. There has been a slight upturn in real median household income since June 2011, but income remains far below the pre-recession level.

The Birth-Death model adds an average of 62,000 jobs to the reported payroll jobs numbers each month. This arbitrary boost to the payroll jobs numbers is in addition to the Bureau of Labor Statistics’ underlying assumption that unreported jobs lost to business failures are matched by unreported new jobs from new business startups, an assumption that does not well fit an economy that fell into recession and is unable to recover.

John Williams concludes that in current BLS reporting, “the aggregate average overstatement of employment change easily exceeds 200,000 jobs per month.”

In other words, the economy did not gain 288,000 new jobs last month. But let’s assume the economy did gain 288,000 jobs and exam where the claimed jobs are reported to be.

Of the alleged 288,000 new jobs, 16,000, or 5.5 percent are in manufacturing, which is not very promising for engineers and blue collar workers. Growth in goods producing jobs has almost disappeared from the US economy. As explained below, to alter this problem the government is going to change definitions in order to artificially inflate manufacturing jobs.

In June private services account for 82 percent of the supposed new jobs. The jobs are found mainly in non-tradable domestic services that pay little and cannot be exported to help to close the large US trade deficit.

Wholesale and retail trade account for 55,300 jobs. Do you believe sales are this strong when retailers are closing stores and when shopping malls are closing?

Insurance contributed 8,500 jobs.

As so few can purchase homes, “real estate rental and leasing” contributed 8,500 jobs.

Professional and business services contributed 67,000 jobs, but 57% of these jobs were in employment services, temporary help services, and services to buildings and dwellings.
That old standby, education and health services, accounted for 33,700 jobs consisting mainly of ambulatory health care services jobs and social assistance jobs of which three-quarters are in child day care services.

The other old standby, waitresses and bartenders, gave us 32,800 jobs, and amusements, gambling, and recreation gave us 3,500 jobs.

Local government, principally education, gave us 22,000 jobs.

So, where are the jobs for university graduates? They are practically non-existent. Think of all the MBAs, but June had only 2,300 jobs for management of companies and enterprises.

Think of the struggle to get into law and medical schools. There’s no job payoff. June had jobs for 1,200 in legal services, which includes receptionists and para-legals. Where are all the law school graduates finding jobs?

Offices of physicians  hired 4,000 people. Outpatient care centers hired 700 people. Nursing care facilities hired 2,400 people. So where are the jobs for the medical school graduates?

Aside from all the exaggerations in the jobs numbers of which ShadowStats.com has informed us, just taking the jobs as reported, what kind of economy do these jobs indicate: a superpower whose pretensions are to exercise hegemony over the world or an economy in which opportunities are disappearing and incomes are falling?

Do you think that this jobs picture would be the same if the government in Washington cared about you instead of the mega-rich?

Some interesting numbers can be calculated from table A.9 in the BLS press release. John Williams advises that the BLS is inconsistent in the methods it uses to tabulate the data in table A.9 and that the data is also afflicted by seasonal adjustment problems. However, as the unemployment rate and payroll jobs are reported regardless of their problems, we can also report the BLS finding that in June 523,000 full-time jobs disappeared and 800,000 part time jobs appeared.

Employers are terminating full-time employment and replacing the jobs with part-time employment in order to come in under the 50-person full time employment that makes employers responsible for fringe benefits such as health care.

Americans are already experiencing difficulties making ends meet, despite the alleged “recovery.” If yet another half million Americans have been forced onto part-time pay with consequent loss of health care and other benefits, consumer demand is further compressed, with the consequence, unless hidden by statistical trickery, of a 2nd quarter negative GDP and thus officially the reappearance of recession.

What will the government do if a recession cannot be hidden? If years of unprecedented money printing and Keynesian fiscal deficits have not brought recovery, what will bring recovery? How far down will US living standards fall for the 99% in order that the 1% can become ever more mega-rich while Washington wastes our diminishing substance exercising hegemony over the world?

Just as Washington lied to you about Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons, Russian invasion of Ukraine, Waco, and any number of false flag or nonexistent attacks such as Tonkin Gulf, Washington lies to you about jobs and economic recovery. Don’t believe the spin that you are unemployed because you are shiftless and prefer government handouts to work. The government does not want you to know that you are unemployed because the corporations offshored American jobs to foreigners and because economic policy only serves the oversized banks and the one percent.

The federal governments Economic Classification Policy Committee has come up with a proposal to redefine fact as fantasy in order to hide offshoring’s contribution to the US trade deficit, artificially inflate the number of US manufacturing jobs, and redefine foreign-made manufactured products as US manufactured products. For example, Apple iPhones made in China and sold in Europe would be reported as a US export of manufactured goods. Read Ben Beachy’s important report on this blatant statistical fraud in CounterPunch’s July 4th weekend edition.

China will not agree that the Apple brand name means that the phones are not Chinese production. If  Obama succeeds with this fraud, the iPhones would be counted twice, once by China and once by the US, and the double-counting would exaggerate world GDP.

For years I have exposed the absurd claim that offshoring is merely the operation of free trade, and I have exposed the incompetent studies by such as Michael Porter at Harvard and Matthew Slaughter at Dartmouth that claimed to prove that the US was benefitting from offshoring its manufacturing. My book published in 2012 in Germany and in 2013 in the US, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, proves that offshoring has dismantled the ladders of upward mobility that made the US an opportunity society and is responsible for the decline in US economic growth. The lost jobs and decline in the middle class has contributed to the rise in income inequality, the destruction of tax base for cities and states, and loss of population in America’s once great manufacturing centers.

For the most part economists have turned a blind eye. Economists serve the globalists. It pays them well.

The corruption in present-day America is total. Psychologists and anthropologists serve war and torture. Economists serve globalism and US financial hegemony. Physicists and chemists serve the war industries. Physicists and computer geeks serve NSA. The media serves the government and the corporations. The political parties serve the six powerful private interest groups that rule the country.

No one serves truth and liberty. 

Why Did the Unemployment Rate Drop So Much?

by Phil Izzo, Wall Street Journal

The U.S. unemployment rate tumbled to 6.3% in April as the overall labor force posted its biggest decline since October. The question for the health of the labor market: Why did all those people drop out?

The jobless rate is calculated by taking the total number of unemployed people and dividing it by everyone in the U.S. who is working or looking for work — what the Labor Department calls the labor force. When both of those numbers decline, even if fewer people got jobs in the month, the unemployment rate falls. Both of those numbers can fall for many reasons, and they’re worrisome to different degrees.

The one that raises the biggest concern is when unemployed people get discouraged with the job market and give up looking for work. Once someone leaves the labor force, it’s much harder for them to eventually find work. Many never return. That was at least part of the reason for the decline in April. The number of workers who said they weren’t looking for work because they were discouraged over job prospects ticked higher. But the number remained below the average for all of last year, and doesn’t come close to accounting for the big drop in the labor force. Meanwhile, the total number of people who moved from unemployed out of the labor force also ticked up last month, but it was very close to the average for 2013, indicating no acceleration.

Another way to look to see if people are giving up is by looking at a broader measure of unemployment, known as the “U-6″ for its data classification by the Labor Department. That rate includes everyone in the official rate plus “marginally attached workers” — those who are neither working nor looking for work, but say they want a job and have looked for work recently; and people who are employed part-time for economic reasons, meaning they want full-time work but took a part-time schedule instead because that’s all they could find. The rate was 12.3% in April, falling the same 0.4 percentage point that the headline rate declined. When the U-6 is steady and the main rate is falling, it can suggest an underlying weak labor market. But when both are dropping together, it suggests that there might be other broader trends.

So if the labor force didn’t drop this month because of people giving up, what’s going on? One trend weighing on the labor force is people with jobs retiring, and last month there was an increase in the number of employed people who were no longer working or looking for work. That flow was at its highest level since October and the third highest since before the recession.

But that doesn’t explain why there are fewer unemployed people. The number of unemployed can fall because people got jobs, because they dropped out of the labor force, or it can fall just because fewer people decided to start looking for work. In April, one of the reasons the number of unemployed fell is because fewer people came off the sidelines to look for work. The number of people flowing from out of the labor force to unemployed was at its lowest level since 2008. Lots more people than usual decided to stay on the sidelines.

That isn’t a hopeful sign for the economy, as people who otherwise might want work aren’t encouraged enough to come off the sidelines. But it’s also less worrying than people giving up looking for work. Many new entrants to the labor force are younger people who will eventually come in, and are on the sidelines because they can be.

No one should read too much into one month’s moves in the labor force. Much of this month’s changes could be recalibrating after a couple of months of increases in the labor force participation rate, and some of it could be reversed next month. Meanwhile, while the details suggest the trend is worth watching, it’s not likely that this month represents a return to discouraged workers giving up and dropping out of the labor market.

Our irrational, harmful bias against the unemployed

By Peter Cappelli, Washingon Post

The persistent high level of unemployment in the six years since the Great Recession began is fast becoming the defining theme of this generation — and a leadership imperative that can no longer be ignored.

Friday’s news on job growth is good: an increase of 288,000 jobs this past month, bringing the unemployment rate to 6.3 percent, well down from its 30-year peak of 10 percent. The number of discouraged workers who want a job but have given up trying to find one is unchanged, however. When we include those in the mix, we’re still left with about three available candidates for every job vacancy out there.

The three and a half million people who remain “long-term unemployed” — that is, who have been out of work for more than six months — represent more than a third of unemployed workers. This is the highest it’s been since the Great Depression. Being out of work that long creates many problems, such as a loss of housing or health care, that not only cause hardship for individuals and their families, but also place even more burdens on public and private support systems.

Yet the tools for addressing the long-term unemployment problem are within our grasp. And chief among them is for employers to move past the stigma that the unemployed are somehow less qualified to hold a job. That bias persists in corporate human resources departments, but it is unsupported by evidence.

It’s maddening to see such imaginary fears become real barriers to solving our employment crisis. A field study by Northeastern University economics Ph.D. candidate Rand Ghayad and another led by Kory Kroft at University of Toronto sent out fake resumes to employers. The studies found strong evidence that employers’ willingness to consider applicants dropped like a stone after the candidates had been unemployed for six months. The companies actually preferred candidates with no relevant experience to those with a background in the field but who’d been out of work for a stretch.

Corporate leaders haven’t always viewed unemployment this way. Traditionally when the economy improved and created new jobs, businesses would look to the ranks of the unemployed to fill them. Until the mid-1980s, the term “layoff” actually referred to a temporary job loss — and employers were expected to rehire these workers as soon as the economy turned up again.

But by the 1990s, that stopped happening, and the term became a euphemism for permanent job losses instead. This coincided with the “jobless recoveries” that have accompanied every recession since then.

So if employers are not rehiring from the ranks of the unemployed now, how do they fill new jobs? By hiring from each other. This nonsensical game of musical chairs (I hire your workers, you hire someone else’s, and then they try to hire mine) would seem to be unsustainable. Sooner or later, one might think, employers will start to see the unemployed as a valuable alternative.

But in fact, they haven’t. Vacancies are simply staying open longer as employers wait to find individuals who are willing to move from other companies. And it has become so prevalent for employers to reject unemployed job candidates outright that last year the Equal Employment Opportunities Commission threatened to start investigating these cases.

Why won’t employers take long-term unemployed candidates more seriously? The reason has much to do with simple bias, and little to do with hard evidence.

One myth about the unemployed is that something must be wrong with a person who lost his or her job. The economists Bob Gibbons and Larry Katz found evidence of this when they studied how people who were laid off because their plant closed — an event that clearly wasn’t their fault. They had an easier time getting rehired than those who were laid-off for other reasons.

Meanwhile, the most intense bias against the long-term unemployed seems to be the result of yet another myth: If they were good, someone else would have hired them by now. All it takes is for enough hiring managers to think this same way, and no one would ever get a job.

The final reason for bias against the long-term unemployed is the notion that their skills must have gotten out of date by not working. That might be true for surgeons, whose manual dexterity can decline quickly, or maybe in tech fields where software has advanced to a new generation.

But few jobs are like that. Studies have found that the performance of new hires who had been unemployed for a long time was no different than that of new hires who came directly from jobs elsewhere. In fact, most jobs are so routine that taking a break from them — a sabbatical — is actually a good thing for improving work performance. Ironically, so few employees learn new skills on the job these days that it's much more likely that an unemployed person might have expanded his or her skill set, either by taking classes, mastering new software or learning new marketing techniques in the course of extended unemployment.

Ruling out job candidates because they have been unemployed imposes big costs on both citizens, who remain without jobs and income, and on the economy — not to mention on employers who are losing out on an entire population of talented candidates. There is no justification for doing it. In fact, it’s a form of discrimination.

Responsible business leaders should, at the very minimum, tell their human resource departments to update their hiring policies so they don’t filter applicants based on current employment status. The biggest problem is likely to be overcoming the prejudices of hiring managers, who often have little information about the real predictors of job performance and so rely on these false assumptions that unemployed candidates probably aren't good performers. A simple statement from leadership that this is not the case is often enough to change their approach.

Moreover, corporate leaders should support policy changes that provide tax credits for hiring the long-term unemployed. The credits would incentivize employers to look past their own biases, and would cost the government nothing unless an eligible candidate is hired. I reviewed the research for a group called the National Employer Opportunities Network, and we found that such tax credits are a cheap and ultimately beneficial way to move people off government programs.

Plus, in the process, it may actually increase total employment — and help stop the pointless game of musical chairs that hurts rather than helps everyone.

An overview of the April 2014 jobs report

May 2, 2014


The Bureau of Labor Statistics reported on May 2, 2014 that the official seasonally adjusted unemployment rate for April 2014 was 6.3 percent, down from 6.7 percent in March and February, and from 7.5 percent in April 2013.

Total non-farm employment increased by 288,000 during the month of April with seasonal adjustment, but increased by 1,152,000 during the month of April without seasonal adjustment.

The seasonally adjusted total non-farm job creation figure for March 2014 was revised upward to 203,000 from 192,000, and the seasonally adjusted total non-farm job creation figure for February 2014 was revised upward to 222,000 from 197,000. The unadjusted total non-farm job creation figure for March 2014 was revised upward to 944,000 from 941,000, and the unadjusted total non-farm job creation figure for February 2014 was revised downward to 741,000 from 743,000.

Breaking these figures down further, with seasonal adjustment, private sector employment increased by 273,000 during the month of April while government employment increased by 15,000. Without seasonal adjustment, private sector employment increased by 1,109,000 during the month of April while government employment increased by 43,000.

The seasonally adjusted private sector job creation figure for March 2014 was revised upward to 202,000 from 192,000, and the seasonally adjusted private sector job creation figure for February 2014 was revised upward to 201,000 from 188,000. The unadjusted private sector job creation figure for March 2014 was revised upward to 834,000 from 831,000, and the unadjusted private sector job creation figure for February 2014 was revised downward to 307,000 from 315,000.

The seasonally adjusted government job creation figure for March 2014 was revised upward to 1,000 from 0, and the seasonally adjusted government job creation figure for February 2014 was revised upward to 21,000 from 9,000. The unadjusted government job creation figure for March 2014 was not revised from 110,000, and the unadjusted government job creation figure for February 2014 was revised upward to 434,000 from 428,000.

The BLS keeps track of six unemployment rates, which are defined as follows and given without seasonal adjustments:

• U1: Persons unemployed 15 weeks or longer, as a percent of the civilian labor force. This rate is 3.3 percent for April 2014, down from 3.7 percent for March, 3.6 percent for February, and 4.3 percent for April 2013.
• U2: Job losers and persons who completed temporary jobs, as a percent of the civilian labor force. This rate is 3.2 percent for April 2014, down from 3.7 percent for March, 3.9 percent for February, and 3.9 percent for April 2013.
• U3: Total unemployed, as a percent of the civilian labor force (official unemployment rate). This rate is 5.9 percent for April 2014, down from 6.8 percent for March, 7.0 percent for February, and 7.1 percent for April 2013.
• U4: U3 plus discouraged workers, as a percent of the civilian labor force plus discouraged workers. “Discouraged workers” are those who have stopped looking for work because current economic conditions make them believe that no jobs are available. This rate is 6.3 percent for April 2014, down from 7.2 percent for March, 7.5 percent for February, and 7.6 percent for April 2013.
• U5: U4 plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force. “Marginally attached” workers are those who would like and are able to work, but have not looked for a job recently. This rate is 7.2 percent for April 2014, down from 8.1 percent for March, 8.4 percent for February, and 8.5 percent for April 2013.
• U6: U5 plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force. This rate is 11.8 percent for April 2014, down from 12.8 percent for March, 13.1 percent for February, and 13.4 percent for April 2013.

As people who are employed part-time typically work about half as much as people who work full-time, it is useful to consider a "U5½," defined as the arithmetic mean of the U5 and U6 numbers. This measure would thus count people who work part-time but wish to work full-time as "half-employed." This rate is 9.5 percent for April 2014, down from 10.45 percent for March, 10.75 percent for February, and 10.95 percent for April 2013.

The BLS revised the Current Population Survey, which gathers the data needed to determine these rates, in 1994. Among the changes made, the U3 rate was named the new "official" unemployment rate, instead of the U5 rate. This revision also defined "long-term discouraged workers" out of official existence. With the inclusion of long-term discouraged workers, the SGS Alternate Unemployment Rate, which might be considered a "U7" rate, exceeds 23 percent.

The use of the U3 as the official definition exposes some holes in the BLS's thinking, because according to them, the following are true:

• A person who loses a full-time job but spends one hour each week mowing a lawn for pay is considered employed.
• A person who simply expresses interest in having a job is classified as unemployed.
• "Discouraged workers" are not classified as unemployed or even as part of the labor force.
• A sharp decrease in a worker's wages when forced to change jobs is not accounted for.

What this means is that the official unemployment rate can fluctuate because discouraged workers (who are not considered to be part of the labor force in the U3 measurement) who re-enter the labor force will cause the U3 rate to spike. The U3 rate can also dip temporarily when such people find temporary jobs and then lose them a month or two later. It also means that the U3 rate will go down when people give up looking for jobs, as 806,000 people did in April 2014. The labor force participation rate was 62.8 percent for April 2014, down from 63.2 percent for March, 63.0 percent for February, and 63.3 percent for April 2013.

Given the problems with the BLS unemployment rates, are they a useful measurement of how well the economy is performing, a wild guess that cannot be accurate despite the BLS's best efforts, or a deliberate fraud by the government? I report, you decide.

Discouraged Worker Dropouts Rise 783k, 80% Higher Than Nonfarm Payroll Jobs Added

Anthony B. Sanders – George Mason University

 

I was at Cornell University in Ithaca New York giving a presentation on mortgages on Friday when the jobs report was released, so I had to wait to read the report in its entirety. Here is my after-seminar report from Friday while waiting to go to dinner.

According to the Bureau of Labor Statistics, there are 9.75 million Americans that are “unemployed” and there are 92.02 million Americans that are “not in the labor force” for a grand total of 101.77 million working age Americans that do not have a job. Back in April 2000, only 5.48 million Americans were unemployed and only 69.27 million Americans were “not in the labor force” for a grand total of 74.75 million Americans without a job. That means that the number of working age Americans without a job has risen by 27 million since the year 2000.
 
However, the banner headline in the media was “288,000 Jobs Added!!” What was NOT in the headlines was that the number of people in the labor force fell by 806,000. In other words, 518,000 more workers LEFT the labor force than joined it in April.

In addition, the Number Of Workers Discouraged Not in Labor Force Searched For Work rose by 783,000 in April. That figure is back to the alleged “end” of the recession (according to the NBER). So, does this mean that the U.S. can announced that the Labor Market’s recession has ended?

No. The following economic indicators have declined since the end of 2008: real median household income, hourly wage growth (YoY), labor force participation rate, and M2 Money Velocity.

The Federal Reserve has attempted to depress interest rates with quantitative easing (balance sheet purchases and zero-interest rate policy), but the labor market is only back to end of recession levels.

According to the Taylor Rule, The Fed should be raising the Fed Funds Rate Target (should be 1.52%, but Fed Funds Target still at 0.25%). The point is for mortgage lenders is that the number of qualified borrowers have been reduced because of the recession and bubble burst and small increases in interest rates are unlikely to have an effect.

And lastly, of course, mortgage purchase applications remain lower than at the “end” of the recession in June 2009. Mortgage borrowers are as discouraged as unemployed workers.

Note: My colleague at University of South Carolina, Jean Helwege, wrote me and said “Maybe it is because of the run-up in the stock market and people can now stop looking for work.” Possibly, but BLS doesn’t ask those questions. What we do know if the mortgage purchase applications and originations remain depressed after the housing and credit bubble burst, and that is correlated with declining wages, real income and the number of discouraged workers.

Anecdotal evidence? I know two kids from Columbus OH whose grandfather gave them both large Trust Funds. They are in their 20s and one doesn’t work and the other dabbles in low paying jobs (part-time). But we don’t know how pervasive that is across the country.

Real jobless rate hits 12.4%, 800,000 leave labor force

Jerome R. Corsi , WND

 

NEW YORK – The Bureau of Labor Statistics announcement that unemployment has dropped from 6.7 percent in March to 6.3 percent in April was partly attributed to some 800,000 workers dropping out of the labor force last month, reducing the labor participation rate to 62.8 percent, a new low for the Obama administration.

After adjusting the BLS unemployment number to what is known as “U-6” – a measure that includes total unemployed, plus all persons marginally attached to the labor force, plus total part-time employed for economic reasons – unemployment in April was 12.3 percent.

The amount (not seasonally adjusted) of Americans not in the labor force in April rose to 92,594,000, almost 1 million more than the previous month. In March, 91,630,000 Americans were not in the labor force, which includes an aging population that is continuing to head into retirement.

According to John Williams, an economist known for arguing the government reports manipulate “shadow statistics” of economic data for political purposes, drops in the unemployment rate as reported by the BLS have become virtually meaningless.

“The broad economic outlook has not changed, despite the heavily-distorted numbers that continue to be published by the BLS,” Williams writes in his subscription newsletter on ShadowStats.com. “The unemployment rates have not dropped from peak levels due to a surge in hiring; instead, they generally have dropped because of discouraged workers being eliminated from headline labor-force accounting.”

Williams recreates a ShadowStats alternative unemployment rate reflecting methodology that includes “long-term discouraged workers.” In 1994 under the Clinton administration, the Bureau of Labor Statistics removed that category from those considered “unemployed” in any of the government’s unemployment measures.

The BLS publishes six levels of unemployment, but only the headline U3 unemployment rate gets the press. The headline number does not count as unemployed the “discouraged” workers who have not looked for work in the past four weeks because they believed no jobs were available.

Discouraged workers

Williams has demonstrated that it takes an expert to truly decipher BLS unemployment statistics.

The U6 unemployment rate is the BLS’s broadest measure. It includes those marginally attached to the labor force and the “under-employed” – those who have accepted part-time jobs though they are looking for full-time employment. Also included are short-term discouraged workers who have not looked for work in the last year because there are no jobs to be found.

Since 1994, however, the long-term discouraged workers, those who have been discouraged for more than one year, have been excluded from all government data.

Williams calculates his “ShadowStats Alternative Unemployment Rate” by adding to the BLS U6 numbers the long-term discouraged workers.

He argues that his ShadowStats Alternative Unemployment measure most closely mirrors common experience.

“If you were to survey everyone in the country as to whether they were employed or unemployed, without qualification as to when they last looked for a job, the resulting unemployment rate would be close to the ShadowStats estimate,” Williams told WND.

The headline BLS unemployment rate has stayed relatively low because it excludes all discouraged workers, Williams argues.

As the unemployed first become discouraged and then disappear into the long-term discouraged category, they also vanish from inclusion in the headline labor force numbers. Those workers, however, are ready to take a job if one becomes available. They are unemployed and consider themselves to be unemployed, but the government’s popularly followed unemployment reporting ignores them completely.

Below is a more complete unemployment table that includes the seasonally adjusted unemployment percentages for U3 unemployment as well as the same for U6 unemployment, followed by the ShadowStats Alternative Unemployment rate, comparing April 2013 for March and April 2014.

Economy of part-time jobs

In August 2013, the House Ways and Means Committee documented that seven out of every eight new employees under Obama have been part-time employees.

“The headlines citing last week’s jobs report as the lowest unemployment rate in years may have been technically accurate, but they are also reminders that looks can be deceiving,” the House Ways and Means report noted at the time.

“The reality, as you dig into the latest jobs data, reveals that few are finding the full-time work they want and need, and many are forced to accept part-time employment.”

To support the argument, the House Ways and Means Committee produced the following table drawn from Bureau of Labor Statistics.

The House Ways and Means Committee linked to an article Associated Press published Aug. 4, 2013, that stated: “So far this year, low-paying industries have provided 61 percent of he nation’s job growth, even though these industries represent just 39 percent of overall U.S. jobs, according to Labor Department numbers analyzed by Moody’s Analytics.”

AP economics writer Paul Wiseman noted part-time work had made up more than 77 percent of the job growth so far that year, with part-time work defined as being less than 25 hours a week.

Appearing on PBS’s “McLaughlin Group” in October 2013, real estate mogul Mort Zuckerman said that “88 percent of the jobs that have been created this year (2013) are part-time jobs.”

Jobs increase by 288,000 in April. Unemployment rate falls to 6.3%. But labor force falls sharply

by Meteor Blades for Daily Kos Labor

Calculated Risk

The Bureau of Labor Statistics reported the economy created a seasonally adjusted 273,000 new private jobs in April, and 15,000 new jobs in the public sector, the best overall gain since January 2012. The consensus of experts surveyed by Bloomberg earlier in the week had put expected new job creation at 215,000. Both full-time and part-time jobs are included in the total. The official unemployment rate fell to 6.3 percent, the lowest level since September 2008.

There were a couple of clouds over these significantly improved figures, however. The civilian labor force shed 806,000 people in April, a massive drop after rises in the three-month January-March period of 1.26 million. The employment-population ratio remained steady 58.9 percent. But the labor force participation rate fell to 62.8 percent, a 0.4 percent drop that returned it to its lowest level in 37 years.

The bureau's report always includes an alternative measure, U6. This calculation covers not just Americans with no job, but also those working part time who want full-time positions—the underemployed who are called "part time for economic reasons"—and workers who have looked for jobs in the past 12 months but not in the past four weeks. U6 fell from 12.7 percent in March to 12.3 percent in April. U6 does not include people who have not looked for work in the past 12 months.

Revisions changed the job numbers for February from 197,000 to 222,000 and for March from 192,000 to 203,000. That produced a three-month average of 238,000. At that rate, according to the Hamilton Project's Job Gap calculator, it would take until December 2017 to return to pre-recession employment levels at the same time as absorbing the people who enter the labor force each month.

The number of long-term unemployed who have been jobless for 27 weeks or more, fell to 3.5 million, 35.3 percent of all those accounted for who have no work.

The number of officially unemployed Americans fell sharply to 9.8 million. But there are the millions of discouraged workers not included in that count because they have left the workforce.

The payroll services company Automatic Data Processing had reported on Wednesday a seasonally adjusted gain of 220,000 private-sector jobs for April. ADP does not report on public-sector jobs and its estimated growth figures, despite a change in methodology in 2012, frequently aren't a close match with the BLS private-job figures.

Among other news in the April job report:

Demographic breakdown of official (U3) seasonally adjusted jobless rate:

• African American: 11.6 percent
• Latino: 7.3 percent
• Asian (not seasonally adjusted): 5.7 percent
• American Indian (data not collected on monthly basis)
• White: 5.3 percent
• Adult women (20 and older): 5.7 percent
• Adult Men (20 and older): 5.9 percent
• Teenagers (16-19): 19.1 percent

Duration of unemployment:

• Less than five weeks: 2.45 million
• 5 to 14 weeks: 2.35 million
• 15 to 26 weeks: 1.53 million
• 27 weeks and more:  3.45 million

Job gains and losses in selected categories:

• Professional services: + 75,000
• Transportation and warehousing : + 11,300
• Leisure & hospitality: + 28,000
• Information: - 3,000
• Health care: + 27,900
• Retail trade: + 34,500
• Construction: + 32,000
• Manufacturing: + 12,000
• Average weekly manufacturing hours fell 0.2 hours to 40.8 hours.
• Average work week for all employees on non-farm payrolls remained at 34.5 hours.
• Average hourly earnings for all employees on private nonfarm payrolls was unchanged at $24.31.

Here's what the seasonally adjusted job growth numbers have looked like in March for the previous 10 years.

April 2004: + 249,000
April 2005: + 363,000
April 2006: + 182,000
April 2007: +   78,000
April 2008: -  214,000
April 2009: -  684,000
April 2010: + 251,000
April 2011: + 322,000
April 2012: +   96,000
April 2013: + 203,000
April 2014: + 288,000

For some time now, the Economic Policy Institute has been keeping track of "missing workers." These people "who, because of weak job opportunities, are neither employed nor actively seeking a job. In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger. Because jobless workers are only counted as unemployed if they are actively seeking work, these “missing workers” are not reflected in the unemployment rate."

EPI says there are currently 6.2 million of these missing workers. Here are two charts showing its findings:

The BLS jobs report is the product of a pair of surveys, one of more than 410,000 business establishments called Current Employment Statistics, and one called the Current Population Survey, which questions 60,000 householders each month. The establishment survey determines how many new jobs were added. It is always calculated on a seasonally adjusted basis determined by a frequently tweaked formula. The BLS report only provides a snapshot of what's happening at a single point in time.

It's important to understand that the jobs-created-last-month-numbers that it reports are not "real." Not because of a conspiracy, but because statisticians apply formulas to the raw data, estimate the number of jobs created by the "birth" and "death" of businesses, and use other filters to fine-tune the numbers. And, always good to remember, in the fine print, they tell us that the actual number of newly created jobs reported is actually plus or minus 100,000.

No Jobs For Americans

The Phony Recovery
by Paul Craig Roberts


The alleged recovery took a direct hit from Friday’s payroll jobs report. The Bureau of Labor Statistics reported that the economy created 74,000 net new jobs in December.

Wholesale and retail trade accounted for 70,700 of these jobs or 95.5%. It is likely that the December wholesale and retail hires were temporary for the Christmas shopping season, which doesn’t seem to have been very exuberant, especially in light of Macy’s decision to close five stores and lay off 2,500 employees. It is a good bet that these December hires have already been laid off.

A job gain of 74,000, even if it is real, is about half of what is needed to keep the unemployment rate even with population growth. Yet the Bureau of Labor Statistics reports that the unemployment rate fell from 7.0% to 6.7%. Clearly, this decline in unemployment was not caused by the reported 74,000 jobs gain. The unemployment rate fell, because Americans unable to find jobs ceased looking for employment and, thereby, ceased to be counted as unemployed.

In America the unemployment rate is a deception just like everything else. The rate of American unemployment fell, because people can’t find jobs. The fewer the jobs, the lower the unemployment rate.

I noticed today that the financial media presstitutes were a bit hesitant to hype the drop in the rate of unemployment when there was no jobs growth to account for it. The Wall Street and bank economists did their best to disbelieve the jobs report as did some of the bought-and-paid-for university professors. Too many interests have a stake in the non-existent recovery declared 4.5 years ago to be able to admit that it is not really there.

I have been examining the monthly jobs reports for a decade or longer. I must say that I as struck by the December report. Normally, a mainstay of jobs gain is the category “education and health services,” with “ambulatory health care services” adding thousands of jobs. In December the net contribution of “education and health services” was zero, with “ambulatory health care services” losing 4,100 jobs and health care losing 6,000 jobs. If memory serves, this is a first. Perhaps it reflects adverse impacts of the ripoff known as Obamacare, possibly the worst piece of domestic legislation passed in decades.

I was also struck by the report that the gain in employment of waitresses and bartenders, normally a large percentage of the job gain, was down to 9,400 jobs, which were offset by declines elsewhere, such as the layoff of local school teachers.

Aren’t Washington’s priorities wonderful? $1,000 billion per year in Quantitative Easing, essentially subsidies for 6 banks “too big to fail,” and nothing for school teachers. It should warm every Republican’s heart.

A tiny bright spot in the payroll jobs report is 9,000 new manufacturing jobs. The US manufacturing workforce has declined so dramatically since jobs offshoring became the policy of American corporations that 9,000 jobs doesn’t register on the scale. Fabricated metal products, which I think is roofing metal, accounted for 56% of the manufacturing jobs. Roofing metal is not an export. Employment in the production of products that could be exported, such as “computer and electronic equipment,” and “electronic instruments” declined by 2,400 and 3,500 respectively.

Clearly, this is not a payroll jobs report that provides cover for the looting of the prospects of ordinary Americans by the financial and offshoring elites. One can wonder how the BLS civil servants who produced it can avoid retribution. It will be interesting to see what occurs in the January payroll jobs report.

Friday’s Job Report

No Hope On The Jobs Front 
July 5, 2013 | Paul Craig Roberts


Do you remember the promise of the New Economy that was going to replace the lost “dirty fingernail” manufacturing jobs with innovative highly paid New Economy jobs? Well, the promise was just another deception from the elites who have stolen Americans’ future.
For the umpteenth consecutive month and year, the June BLS payroll jobs report (released on July 5) shows that the US economy has created no such jobs. The same old tired categories account for the same old lowly paid new domestic service jobs.

Of the 195,000 new private sector jobs alleged to have been created, 75,000 or 38% are accounted for by the category “leisure and hospitality.” Within this category there were 52,000 new waitresses and bartenders, and 19,000 jobs in “amusements gambling, and recreation.”
Retail trade added 37,000 employees. Is your local shopping center that busy?

Wholesale trade added 11,000.

Zero Hedge points out that the retail and wholesale jobs numbers seem inconsistent with the latest report from the Institute of Supply Management, which shows a sharp drop in new order components and business activity.  Perhaps the New Economy’s inefficiency requires more people to sell less.

Professional and business services added, allegedly, 53,000 jobs, which are largely building management services, janitors, employment services, and temporary help.

Ambulatory health care services added 13,000 jobs.

Financial activities allegedly added 17,000 jobs despite the Bank of America moving its property appraisals to India.

Local government, despite severe budget cuts, added 13,000 jobs.

The BLS news release points out that the number of involuntary part-time workers (the number of people who are unable to find full-time jobs or whose hours were cut back) increased by 322,000 in June to 8.2 million.

This deplorable report provided the cover for the market riggers to take the stock market up and the gold market down. Remember that economic theory about “rational markets”? Another deception.

Another Phony Jobs Report

Well, I'm still offline for the foreseeable future, but I had to share this...--jef


From A Government That Lies About Everything
June 7, 2013  | Paul Craig Roberts


June 7, 2013. The payroll jobs report for May released today continues the fantasy.

Goods producing jobs declined, with manufacturing losing another 4,000 jobs, but the New Economy produced 179,000 service jobs.

Are these jobs the high-powered, high-wage “innovation jobs” that economists promised would be our reward from Globalism. I’m afraid not.

According to the Bureau of Labor Statistics, the jobs created are the usual lowly paid
non-exportable domestic service jobs–the jobs of a third world country.
Retail trade accounts for 27,700 of the jobs.

Wholesale trade accounts for 7,900 jobs.

Ambulatory health care services accounts for 15,300 of the jobs.

Waitresses and bartenders account for 38,100 of the jobs.

Local government accounts for 13,000 of the jobs.

Amusements, gambling, and recreation account for 12,500 of the jobs.

Temporary help services provided 25,600 jobs.

Business support services provided 4,300 jobs.

Services to buildings and dwellings provided 6,400 jobs.

Accounting and bookkeeping services provided 3,100 jobs.

Architectural and engineering services provided 4,900 jobs.

Computer systems design and related provided 6,000 jobs (most filled by H-1B work visas).

Management and technical consulting services provided 3,200 jobs.

For a decade this has been the jobs profile of “the world’s most powerful economy.” It is the profile of third world India 40 years ago. The jobs that made the US the dominant economy have been moved off shore by corporations threatened by Wall Street with takeovers if they did not increase their profits.

The easiest way for corporations to increase profits is to take advantage of cheap labor in countries with massive quantities of unemployed labor.

So, if we believe the BLS report, and the reported new jobs are not simply a product of faulty season adjustments and a faulty birth-death model, why is the financial press happy that the US economy can only create third world jobs? Why was the stock market up on the news that the US economy has created 179,000 third world jobs? Would rational markets be up on such discouraging news?

But are the jobs really there?

With retail sales going nowhere, why 35,600 new jobs in wholesale and retail trade?

With real median incomes declining, why 38,100 more waitresses and bartenders? For every month as long as I can remember the BLS reports numerous new jobs in waitresses and bartenders, despite the long-term decline in real median income.

In the May jobs report, where are the jobs for the vast number of new college graduates?

The US now has more hotel maids, bartenders, and waitresses than it has manufacturing workers. The US has twice as many people employed in government than in manufacturing.
The services of maids, bartenders, waitresses, and government cannot be exported.
Therefore, the US trade deficit remains large and without exports to reduce it, a crisis in itself.

What the BLS jobs reports have been telling us for many years is that the US economy is in crisis, in a death-spiral. Yet, not a handful of economists’ voices have been raised.

Today president obama’s economist said that the notch upward in the unemployment rate was because the economic outlook was so good that more people were encouraged to enter the labor market than there were new jobs available.

The conclusion is inescapable: The same government that lies about weapons of mass destruction, Saddam Hussein’s al-Qaeda connections, Iranian nukes, and so on, also lies about jobs, the unemployment rate, the inflation rate, rigs every financial and commodity market, pretends that terrorism is such a threat that the US Constitution must be set aside and that Americans are safer without the protection of habeas corpus and due process.

It is amazing how rare terrorism is, especially with Washington in the second decade of trying to stir up terrorism by invading countries on totally false pretenses, murdering citizens of countries, such as Pakistan and Yemen with drones, and supporting Israel’s never-ending murder and dispossession of the Palestinians.

After such massive provocations from Washington, one would think that the world would be ablaze with terrorism. But it isn’t.

As there is so little terrorism, Washington and its presstitute media call those who resist
Washington’s invasion of their countries “terrorists.” Everyone who resists Washington’s military aggression is a terrorist. Just ask the New York Times, Fox News, or any neoconservative. Or, for that matter, the Bilderbergs, the Council on Foreign Relations, the Trilateral Commission, and Homeland Security, the Gestapo organization that now defines all American dissenters to be “domestic extremists.”

Washington’s claim that Americans have “freedom and democracy” is the sickest joke in human history.

In 21st century America, defendants have no more rights than the accused in Nazi Germany or Stalinist Russia. The FBI now shoots suspects brought in for questioning in the back of the head even before the suspect is arrested.

Long before Bradley Manning’s trial the presstitutes have convicted the accused based on lies leaked by the prosecutors. Consider Bradley Manning. After three years of detention, including one year of torture, he is brought to a rigged trial as a national security danger. All that Bradley Manning did was to comply with the Military Code and report war crimes. As his corrupt superiors did not want to know, he complied with his duty, apparently, by going public.

Now he is being made an example. The message is clear: Support Washington’s war crimes or be destroyed.

The Amerika that exists today has more in common with Nazi Germany than with the America in which I grew up. The young don’t know any different. But those my age realize that we have lost our country. America no longer exists.

The Terrible Unemployment Figures of March 2013

by Robert Oak | The Economic Populist

The BLS employment report shows the official (U3) unemployment rate ticked down 0.1 percentage point to 7.6%, but not because people gained employment.   Instead the unemployment rate dropped due to less people participating in the labor market.  The labor participation rate just hit a record low, not seen since May 1979 when many segments of the population was still quite discriminated against in the workforce.   One cannot just blame retiring baby boomers for low labor participation rates  This article overviews and graphs the statistics from the Current Population Survey of the employment report.   Below is a graph of the official unemployment rate.

The labor participation rate dropped 0.2 percentage points to 63.3%, mentioned above.

The labor participation rate is at artificial lows, where people needing a job are not being counted.  A drop isn't good actually for it means that those who dropped out of the labor force are staying out of the labor force.  For those claiming the low labor participation rate is just people retired, we proved that false by analyzing labor participation rates by age.

The number of employed people now numbers 143,286,000, a -206,000 monthly decline.  We describe here why you shouldn't use the CPS figures on a month to month basis to determine actual job growth.  These are people employed not actual jobs.   In terms of labor flows, the employed has been static for the last six months, a decline of 42,000 employed since October 2012.  From a year ago the employed have risen 1.266 million, but bear in mind the noninstitutional population has also increased by 2.391 million during the same time period.  The statistics from the CPS generally vary widely from month to month.   Below is a graph of the Current Population Survey employed.

Those unemployed stands at 11,742,000, a decline of -290,000 from last month.  Below is the change in unemployed and as we can see, this number also swings wildly on a month to month basis.

The number of people counted as unemployed has also remained fairly static.  From a year ago the official unemployed as declined by -944,000. , For the last six months, the unemployed has dropped by -506 thousand people.  Yet from the employed levels we can see these people are going into not in the labor force instead of getting a job.   Below is a graph of the unemployed.

We want to show a historical graph of the unemployed going back to 1948.  This is just ridiculous.  The number of official unemployed stands at 11,742,000.  In November 1982, the unemployed was 11,938,000.  That is over 30 years ago, during the 1980-1982 recession, and the civilian noninstitutional population has increased by 76.3 million people since then.  Congratulations America, over five years past the official end of the recession the jobs crisis is still worse than it was during the height of the 1980-1982 recession.

Below is a graph of those considered employed, in maroon, scale on left, against those considered unemployed, in blue, scale on right, by the BLS methods.  It is only recently that the growth rate of the employed has exceeded the growth rate of the unemployed (the maroon line exceeding the blue line).

The civilian labor force, which consists of the employed and the officially unemployed, is now at 155,028,000.  This is a decline of -496 thousand from last month.    Notice in the graph below how many more people are in the labor force than at the start of the 2008 recession. Population increases every month and this post gives details on that increase, while this one describes BLS labor concepts as well as how many jobs are needed just to keep up with the increased population (.

It's fairly clear the American workforce is ending up in the not counted statistics.  Those not in the labor force now tallies to 89,967,000, an increase of 663,000 from last month.   Below is the change to show on a month to month basis, the CPS shows quite a bit of variance. We talk about the wild monthly CPS changes in this post.

Below is a graph of the civilian labor force, in maroon, scale on left, against those not in the labor force, in blue, scale on right.  Notice how those not in the labor force as a trend exceeds those considered employed and unemployed.  What we see is a never ending growing segment of the population that is considered neither employed or unemployed, i.e. not in the labor force, increasing, above the trend line of those who would be naturally dropping out, such as the retired and those in school. This is the god awful, terrible aspect of this report.  Once again we see a huge segment of the U.S. population that could be working or looking for work laying idle.  Not in the labor force does include retirees, yet clearly 663 thousand baby boomers did not just magically retiree in a month.

Those considered employed as a ratio to the total Civilian noninstitutional population stands at 58.5%, a -0.1 percentage point drop from last month.  This ratio hasn't been this low since August 1980, as shown in the graph below.   This implies there are many people who could be part of the labor force who are not anymore.

A huge problem with today's labor market is the gross number of working part-time generally.  There are a huge number of people who need full-time jobs with benefits who can't get decent career oriented positions.  Those forced into part time work is now 7,638,000, and drop of -350,000 from last month.  While still a hell of a lot of people are stuck with part-time hours who need full-time work, this is the best news of this month's unemployment report.  With less people working part-time, eventually businesses should have to hire additional workers (unless of course they offshore outsource to China and India).

Below is a graph of forced into part-time  work because they got their hours cut, graphed  as a percentage of the total employed.  Part-time due to cut hours  is known as slack work conditions and consisted of 4,906,000 people for March.  This is a decline of -230,000 from last month.   Below is a graph of forced part-timers due to slack work conditions as a percentage of the civilian labor force.  We think this graph is a recession economic indicator, and notice the slope matches strongly the gray recession bars of the graph.  The percentage of people in working part-time due to slack economic conditions has stayed extremely high since the start of the Great Recession, even though it is overall clearly on a downward trend.

U-6 is a broader measure of unemployment and includes the official unemployed, people working part-time hours because that's all they can get and a subgroup not counted in the labor force but are available for work and looked in the last 12 months.  Believe this or not, the U-6 alternative unemployment rate still leaves out some people wanting a job who are not considered part of the labor force.  U-6 declined a whopping -0.5 percentage points to 13.8%.  The reason for the massive drop in U-6 are the declines in part-timers shown above.

The long term unemployed, or those unemployed for 27 weeks and over, stand at 4,611,000 people.  This is a decline of -186 thousand from last month.  The long term unemployed are the crisis of our time and this figure just isn't decreasing and they are getting hired.  The long term unemployed are now 39.6% of the total unemployed and this percentage decreased -0.6 percentage points from last month.    Because we see such an increase in those not in the labor force, odds are we just saw more long term unemployed drop off the unemployed statistics radar instead of actually getting a job.  Behind this figure is economic devastation for 4.6 million people.

The marginally attached are people not in the labor force because they have not looked for a job in the last month, but have looked for a job in the last year. This number has ballooned since 2007 and not returned to pre-recession levels. The graph below is the number of people considered marginally attached to the labor force, currently at 2.326 million.

Discouraged workers are people, not counted as part of the civilian labor force, who not only want a job, but also looked for one in the last year.  These people aren't job hunting now because they believe there are no jobs out there.  Below is the graph of discouraged workers, currently at 803 thousand people and are a subset of the marginally attached.  Discouraged workers is kind of a baramoter for how the job market is perceived.

One of our favorite statistics from the CPS survey is how many people who are considered not in the labor force, want a job now.  It is a direct survey question from the CPS.  The survey asks people who are not being counted in the unemployment statistics and official unemployment rate if they want a job.  The number who answer yes currently stands at 6,722,000.  This is a 101 thousand person decrease from last month.   That's an astounding number of people not counted who report they actually want a job and roughly 2 million higher than before the recession.   This figure includes the discouraged workers and marginally attached, but is seasonally adjusted, unlike the above.

The average length of unemployment is now 37.1 weeks, an increase of 0.2 weeks from last month.  This still is an absurdly long amount of time to be unemployed and has stayed highly elevated for years, an uptick is not what we want to see.

The average duration is also so high due to the long-term unemployed, who clearly are having a hell of a time getting a job, many facing age discrimination. 

The median time one is unemployed, which means 50% of people have gotten a job in this amount of time, and is 18.1 weeks, an increase of 0.3 weeks from last month.. 

Those unemployed less than five weeks dropped by -203 thousand, those unemployed between five weeks and 14 weeks increased by 56 thousand and people who had been unemployed for 14 weeks to 26 weeks also increased 42,000.  As previously noted, the long term unemployed dropped by -203 thousand.  Yet do not let the decline in short and long term unemployed fool you into thinking the job market is picking up from these duration figures.  A drop in the unemployed does not necessarily mean they found a job.