Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
Silver Price Trend Analysis and Forecast for 2019 - 19th Dec 18
2018 Chaos, 2019 Mayhem - 19th Dec 18
UK House Prices Momentum Forecast 2019 - 18th Dec 18
Will US Government Shutdown Cause The Stock Market To Crash? - 18th Dec 18
The Coming Financial Storm - 18th Dec 18
Jeff Gundlach thinks that a Stocks Bear Market has started. Is he Right? - 18th Dec 18
Gold’s Not An Investment – You Won’t Get Rich - 17th Dec 18
Stock Market At Medium-Term Lows, Which Direction is Next? - 17th Dec 18
This Stock Will Drive America’s 5G Buildout - 17th Dec 18
Stock Market Turn In The Tide - Have a Happy Bear Market! - 17th Dec 18
How A NASA Scientist Could Trigger The Next Cannabis Boom - 17th Dec 18
iShares Russell 2000 IWM Leading Stock Market Decline - 17th Dec 18
Where is the Dow Stock Market Santa Rally? - 17th Dec 18
With Weaker Climate Consensus, Expect Elevated Climate Change - 16th Dec 18
SMIGGLE Advent Calendar 2018 UK Contents - What You Get Look Inside Review - 16th Dec 18
Is there a Lump of Coal in Santa's Stock Market Bag? - 16th Dec 18
This Market Will Drive Gold in 2019… - 16th Dec 18
Gerald Celente:Central Banks Can’t Stop a 2019 Debt Disaster - 16th Dec 18
Gold Stocks Triple Breakout - 15th Dec 18
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

The Illusion of Falling Official 'Unemployment' Fades

Economics / Economic Statistics Jun 07, 2016 - 10:11 AM GMT

By: MoneyMetals

Economics

Friday's employment report featured the headline unemployment rate falling from 5.0% to 4.7% - which is a huge move lower. About the only encouraging aspect of the report is that markets largely ignored the fantasy headline for a change and focused on the ugly details. Nearly everyone acknowledged the report as bad news and markets reacted accordingly.


"There are three kinds of lies - lies,
damned lies and statistics."

- Mark Twain

But not all. Janet Yellen and her crew at the Fed must see through the phony statistics because they are so reluctant to tighten monetary policy. Publicly, however, they talk about job growth and the wonders their stimulus policies have worked.

President Barack Obama and Hillary Clinton also talk triumphantly about putting people back to work. Obama has been parading around the country talking about the fabulous economic recovery he has led. Hillary takes credit for a recovery as well, but promises she can do even better.

They prefer people focus on the headline number and not ask too many questions. After all, their people at the Bureau of Labor Statistics have been hard at work "seasonally adjusting," modifying the formulas, and otherwise massaging the data. They are painting such a lovely picture for voters to enjoy.

The "unemployment rate" has fallen to levels not seen since before the 2008 financial crisis. It's like magic. And just about as real as when David Copperfield made the Statue of Liberty disappear.

The contradiction in their data just keeps getting bigger. The phony "unemployment" rate and the percentage of the population with a job, which readers get by digging into the report details, BOTH keep falling.

And the explanations are getting pretty outlandish. We're told people are "voluntarily" leaving the workforce in droves. Prosperity is so high lots of folks are retiring early, switching to part time work, or living on a single income so one parent can stay home with the kids. Riiiiight!!!

If people have stopped buying it, will officials and their friends in the financial press stop waging their disinformation campaign? One would think the loss of credibility and embarrassment might limit the amount of nonsense they publish each month.

At least, as said, the people didn't buy Friday's headline for once. If we are going to have free markets and find solutions, Americans will have to grapple with reality. James Quinn, of The Burning Platform, does a great job of looking past the headline and pulling some interesting facts out of the employment data:

  • Since 2007 the workforce has grown by 21 million people, while the number of employed has grown by only 5 million.

  • The labor participation rate has plunged from 66.0% to 62.6%, the lowest since the 1970s.

  • The number of Americans who have left the workforce, allegedly because their lives are so fulfilled, is 16 million. Meanwhile, enrollment for the food stamps and Social Security Disability programs is through the roof.

  • The number of people over the age of 65 who are still working keeps growing as older workers try to avoid starvation and homelessness.

  • Of the 5 million jobs added since 2007, only 2 million of them were full-time.

  • Obama's success in destroying the mining industry is borne out in the 207,000 jobs destroyed in the last two years.

  • The percentage of men aged 25 to 54 (prime working years) not working is at an all-time high.

  • Real median household income (using the official CPI, which is also highly manipulated for PR purposes) is still 1.3% LOWER today than it was in 2007. Wages continue to stagnate in the 2.3% growth range, while actual inflation for real people in the real world exceeds 5%.

That is the reality when it comes to jobs in the U.S. Keep questioning the official propaganda.

By Clint Siegner

MoneyMetals.com

Clint Siegner is a Director at Money Metals Exchange, perhaps the nation's fastest-growing dealer of low-premium precious metals coins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon, puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

© 2016 Clint Siegner - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules