Monday, May 7, 2012

"Real Unemployment Rate: 16%, Labor Utilization Rate 63.2%

This morning the Labor Department released the latest monthly jobs report.  The report was grim; only 115,000 jobs created during the past month.  Economists are saying if we are ever to exit this recession we must begin seeing 500,000 new jobs per month created.

Ironically, Obama is basking in the the .1 percent decline in the unemployment rate.  Dead in the water at 8 plus percent the unemployment rate is an anvil sized drag on the economy.

What Obama is not telling you are the nasty details.  The minute unemployment decrease occurred as even more job seekers have forsaken any hope of ever finding a job and are just giving up.  As the feds measure the unemployment numbers they can happily just toss these people to the roadside and plow on, relieved that they don't have to count the lost and forsaken in the jobs statistics.

Fortunate for Obama is that very few Americans even understand this "fuzzy math".  Should the American people ever be exposed to another government statistic that the Bureau of Labor uses when they need a more exact and accurate picture of the labor market, they might be more inclined to toss Obama out come November.

That statistic is the Labor Utilization Rate.  The LUR measures the total number of working age adults who participated in the work force during the past measurement period.  The current Labor Utilization Rate is a dismal 63.1 percent, the lowest rate since Ronald Reagan took office in January 1981.  Need I remind anyone that this frightful labor rate came on the heels of the Jimmy Carter presidency, then consider the "worst President" in our nation's history.

What the LUR tells you is the real level of despondency and frustration in the American labor force.  When only 63 percent of working age Americans are employed one can never hope to emerge from this long and deep recession.

That 63 percent LUR paints a picture of folks who have abandoned the American dream and have joined the ranks of Obama's Food Stamp Army.

Never the less, Obama stands smiling in front of huge adoring crowds as he champions his economy policies.  African American voters will give him 90 percent of their votes even as Black unemployment exceeds 20%.   Obama has recently been touring college campuses to tout low interest student loans..and they are cheering him, even as an even more frightening statistic hovers over the "youthful clueless"; the Bureau of Labor statistics show that half of all June 2012 college graduates have no hope of securing a job.

Sad, Damned Sad.



Anonymous said...

Federal extensions of unemployment benefits have been cancelled effective May 12, 2012. This way, the unemployment figures will appear to "improve" as there will be fewer claims. This catches some unemployed by surprise as claims were cut short even when there is money left in their individual claims. It is just a game for Obama to look better while the unemployed get shafted.

Anonymous said...

"No, you just found another article somewhere, that is, shall we say "marginally attached to reality", to satisfy your need to smear this administration."

There is no challenge in finding legitimate reasons to 'smear this administration' as it's undeniably the worst since the Carter administration, and arguably among the top ten worst of all time. Only a blind partisan and media puppet has trouble admitting this to himself.

Ken said...

I think it's the St. Louis fed that put up the unemployment statistic that included the "no longer in the workforce" numbers and unemployment approaches 38%. I am a Cali Contractor who hasn't seen a set of plans to bid on my desk for two and a half years. All the architects I was bidding for are no longer here or have changed professions and the Obama admin has shutdown oil exploration by a whopping 37% and yes, I believe those numbers are very related. Nobody works when energy is unaffordable. Remember gas lines during Carter's administration, I didn't work then either!