It’s a miracle! We have more than 93 million adults not employed in a workforce of 210 million and the unemployment dropped to 5.3%. It must be Common Core math.
The Bureau of Labor Statistics, the Federal Reserve, and the administration are lying to you about the unemployment numbers. I mean bald-faced lying. The Federal Reserve vice chairman Stanley Fischer, photo below, said on Tuesday that we are near full employment! Who in their right mind with any access to the labor reports would believe that? He was addressing an audience at England’s Oxford University.
This is from the people who have built up a $50 trillion financial bubble since Alan Greesnpan took office.
If employment really was as good as they say, the interest rates would be going up to keep inflation from setting in.
David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan, said – and he proves it quite logically – that we are at about 43%, if it’s even possible to compute.
David Stockman, photo below, calls it the Warren Buffet economy. It has certainly made him rich. His net worth is at about $73 billion.
An article Stockman posted on his website June 15th elaborates on why this is doomed to failure and how it has driven the great divide between rich and poor.
What is most interesting about the article is the obvious. How can we be at near-full employment if more than 93 million Americans aren’t in the workforce?
He said “Janet Yellen doesn’t have a clue as to whether we’re at 30% or 20% unemployment of the potential adult labor hours in the U.S. economy.” He said the same thing about the clueless “Census Bureau survey takers and the BLS numbers crunchers.”
He backs it up, mentioning the underground labor and government interventions that facilitate it.
“The Fed’s current “soft” target of 5.2% on the U-3 unemployment rate is downright ridiculous,” he said.
There are a record number of adults not in the labor force and “only half are retired and receiving social security”. In addition, “the U-3 computational method counts as “employed” anyone who works only a few hours per week.”
That’s their proxy for full employment!
Stockman calls the U-3 number “an absolute and utterly obsolete joke”.
This is an abridged version of Stockman’s math. There are 210 million adult Americans between ages 16 and 68 and that comes to 420 billion potential labor hours. In 2014, there were only 240 billion hours actually in the U.S. economy according to BLS. Therefore, there were 180 billion unemployed labor hours. That puts the real unemployment rate at 42.9%, not 5.5%.
Actually the numbers for June came in at 5.3% which brought accolades from all the media in addition to Stanley Fischer.
Stockman concludes that what is driving the 43% unemployment rate is the cheap labor from abroad, new productive capacity, domestic policies and cultural factors.
As Stockman said of the reserve, “the only tub its lunatic money printing policies are filling is that of the Wall Street speculators.”
There is a record 93,626,000 working-age Americans who did not participate in the nation’s labor force in June, representing a 38 year low. We’re hovering around Jimmy Carter numbers. The job force shrank again in June.
The establishment survey doesn’t distinguish between part-time and full-time jobs. When we say the economy added 321,000 jobs in November, we don’t know how many were 40-hour-a-week positions. There has been little change in the number of people working part-time who were looking for full-time work.
In January, the Wall Street Journal reported that “over the long run, full-time job creation has outpaced part-time job creation for the last several years. That said, there are many people working part-time jobs because they can’t find full-time work–6.9 million in November, far higher than prerecession levels.”
There hasn’t been much change.
Then there is the anemic wage growth and the fact that the average workweek has fallen to 34.5 hours for four months in a row.
What economists are boastful of is the steady 57-month increase in job creation though the trend is flattening. They feel we have jumped a hurdle and they think this is all quite remarkable.
I wonder if the 93 million out of work and all those part-time workers would call it remarkable.
Don’t believe the numbers of jobs created either. Next month, we can look forward to the Feds downward revisions.
BLS News Release: The Employment Situation-June 2015 – Bureau of Labor …