How Did They Get Unemployment to 7.8%? More Part-Time Workers in the Labor Force!

October 5, 2012
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U.S. economic growth has been adjusted downward to 1.3%. The methodology for determining job growth is obviously wrong if they have to keep adjusting it, but they continue to use it because the first one gets the headlines. The second one goes unnoticed.

The housing market is dragging but one area is booming – homes are getting bigger.

“Big homes are back in business,” says the Wall Street Journal’s Dawn Wotapka. And the trend to bigger homes is helping certain home building companies with sales.[Business Insider]

The reason for the boom in this one narrow area of the market is that children are not moving out of their parents’ homes, probably because of not having jobs. Another reason is the interest loans are so low, people are finding they can move to a more expensive home without paying more.

Gas prices in California are over $5 a gallon and they are experiencing shortages.

Manufacturing employment lost workers, particularly in computers and electronics.

Factory orders are down 5.2%.

Construction jobs are down.

The economy added only 114,000 jobs. You need about 220,000 to keep even. In 2012, employment growth is averaging 146,000 per month, compared with an average monthly gain of 153,000 in 2011. [BLS]

We lost over $4400 in income per household over four years.

There is inflation:

via The Political Commentator

…The “experts” tell us that inflation has been kept under control, and while technically that may be true this truth only exists in an ex-food and ex-energy CPI and PPI world. For the foot soldiers such a world does not actually exist, and as these two charts will show inflation has been, and continues to be, financially debilitating!

First let’s consider the approximate 52% rise in the Commodity Food Price Index since right around the time of Barack Obama’s inauguration. This move has taken us beyond the price level reached during the time prior to the housing bubble bursting.

The difference of course is that unemployment and the loss of wealth have made these current price levels unsustainable for many Americans as evidenced by the record enrollment in the federal food stamps program!…

Read more at here

The Bureau of Truth says the Unemployment went down to 7.8% while the U6 number remained the same at 14.7. [BLS stats] This is an unsurprising improvement with an upcoming election.

Employment increased in health care and in transportation and warehousing but changed little in most other major industries.

The unemployment rates for teens is 23.7%, blacks – 13.4%, and Hispanics – 9.9% with little change.

Work force participation increased. Involuntary part-time workers increased from 8 million to 8.6 million, which means they are workers who cannot find full-time work. Marginally-attached workers were little changed. Work force participation went from 63.5% to 63.6%.

HOUSEHOLD DATA

Table A-15. Alternative measures of labor underutilization

[Percent]

Measure

Not seasonally adjusted

Seasonally adjusted

Sept.

2011

Aug.

2012

Sept.

2012

Sept.

2011

May

2012

June

2012

July

2012

Aug.

2012

Sept.

2012

U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force

5.2

4.3

4.2

5.3

4.6

4.6

4.5

4.4

4.3

U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force

5.0

4.4

4.0

5.2

4.5

4.6

4.6

4.5

4.2

U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate)

8.8

8.2

7.6

9.0

8.2

8.2

8.3

8.1

7.8

U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers

9.4

8.7

8.0

9.6

8.7

8.7

8.8

8.6

8.3

U-5 Total unemployed, plus discouraged workers, 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

10.2

9.7

9.0

10.5

9.6

9.7

9.7

9.6

9.3

U-6 Total unemployed, plus all persons marginally attached to the labor force, 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

15.7

14.6

14.2

16.4

14.8

14.9

15.0

14.7

14.7

 

 

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