McAuley’s World Comments in Blue:
WASHINGTON – Private employers hired more workers over the past three months than first thought, a glimmer of hope for the weak economy ahead of the Labor Day weekend. But the unemployment rate rose because not enough jobs were created to absorb the growing number of people looking for work.
Companies added a net total of 67,000 new jobs last month and both July and June’s private-sector job figures were upwardly revised, the Labor Department said Friday. [See my comments below]
Stocks surged after the report’s release. The Dow Jones industrial average rose more than 100 points in afternoon trading and broader indexes were all up. [Yes, after it was reported that 67,000 “net jobs’ were added and not lost … as was expected … wait until Tuesday when the vacation has ended and people return to their offices and digest the “true story” … please read on] ….
….. Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. For the first time this year, the manufacturing sector lost jobs, down a net total of 27,000 for the month….
“Companies added a net total of 67,000 new jobs last month”…. no wait… “Overall, the economy lost 54,000 jobs”… you cannot have a “net total increase” and “Overall, lose jobs” at the same time.
Private companies “allegedly” added 67,000 jobs – there was no “net increase” as the economy, as a whole, lost a “net” of 54,000.
Remember that today, when the press and the Obama Administration claims that jobs have been “added”, the number includes the new “saved or created” concept. After all the numbers were “crunched”, including all the claims of “saved or created” … the economy lost a total of 54,000 jobs in August, there was “zero net jobs gained”. The net loss of 54,000 jobs includes the 67,000 jobs that were allegedly saved or created. But for the claim that there were 67,000 jobs “created or saved” the economy would have lost 114,000 total jobs in August. Once again, there was zero “net job increase” in July 2010.
The United States needs to “create” a minimum of 150,000 new jobs, “actual jobs” as opposed to imaginary or “virtual” jobs, each and every month, to maintain an “employment equilibrium” – to have the economy keep pace with new workers entering the workforce – to have “zero change” in the unemployment rate – no increase – no decrease. If employers eliminate jobs, the economy must create and equal number of new jobs, in addition to the 150,000 jobs needed to accomodate the new workers entering the work force, just to break even. The U.S. economy needed to create at least 1.2 million new jobs between January and the end of August 2010 to maintain an “employment equilibrium” for 2010. (8 months x 150,000 per month = 1.2 million). We are at least ½ million new jobs short of “employment equilibrium” for 2010 (even when we count all of the claimed “saved or created” nonsense jobs).
Query: With a short fall of ½ million new jobs to date in 2010, ½ million jobs short of keeping pace with new workers entering the workforce, never mind creating jobs to replace those jobs that have been lost, why hasn’t the unemployment rate changed (increased) since January 2010? The January 2010 unemployment rate was 10%, today the Obama Administration claims our unemployment rate is 9.6%. If we haven’t created enough jobs to maintain an “”employment equilibrium” with the new workers entering the work force, how did our unemployment rate drop?
Example: In August 2010 the economy needed to create 150,000 new jobs to stay even with the number of new workers entering the work force. The economy actually lost 54,000 jobs …. so in August 2010 the economy was a total of 204,000 jobs short of breaking even ( 150,000 new workers entering the work force plus 54,000 jobs that were lost in the month …).
The shortfall of ½ million new jobs means that the economy fell 40% short of creating enough jobs to maintain an “employment equilibrium”, never mind creating enough new jobs to reduce the unemployment rate.
How has the Obama Administration kept the unemployment rate from rising? (How is the Obama Administration cooking the books?).
1). For every “new worker” who enters the economy without a job being created for them, the Obama Administration claims that 1 unemployed worker gives up their job search and leaves the work force. This is a fraud, but it manufactures a false “employment equilibrium” for the press to report.
2). When the Obama Administration claims to “save” a job, the “save” can be a monthly event – a single individual working for a single employer can have the same job “saved” up to 12 times in a year. Not 12 jobs, 1 job 12 times. When 12 jobs are lost you cannot create a true “employment equilibrium” by saving 1 job 12 times, because that still leaves 11 unemployed people.
Do I smell something burning… are those numbers done yet … shouldn’t someone stop cooking the numbers and look for some real solutions?
While I was reading various blogs today I noted an amazing number of wild claims about unemployment during G. W. Bush’s Presidency … these are the true facts and not some wild political claims:
Average Annual Unemployment Under G.W. Bush – all 8 years – 5.2 %
Highest Annual Unemployment Rate During G.W. Bush: 5.99 (2003)
Lowest Annual Unemployment Rate During G.W. Bush: 4.61 (2007) Just before the Democrats took over Congress …
B. OBAMA’S ANNUAL UNEMPLOYEMNT RATES: 2009 – 9.2%
Jan – Aug 2010 – 9.6%
Filed under: Economic Crisis, Economic Recovery, Economic Recovery Plan, Economists Against The Bailout, Economy, Employment, Unemployment | Tagged: Double Dip Recession, Economic Recovery, Economy, Unemployment |