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The Unemployment Number Doesn’t add up

Posted on October 5, 2012
Filed Under Economics, Jobs | Leave a Comment

“Oh how convenient the rate dropped below 8% for the first time in 43 months, five weeks before the election,” Varney added.

“There is widespread mistrust of this report and these numbers because there are clear contradictions – 873,000 people said they had found work but only 114,000 new jobs were created. That is a contradiction. If you delve a little deeper and it seems that a lot of these people who found work – that is the 873,000 – if you delve deeply, it turns out that 600,000 of these 873,000 people were part time workers. So they came back into the labor force and they pushed the unemployment rate down to 7.8%. But there is a contradiction here between the number of new jobs created and the number of people saying they found work. It was part-time work Bill, that’s what it was,” Stuart Varney said about the unemployment numbers on FOX News.

  • A 7.8 percent today ties Bush’s worst unemployment month.
  • Although previous job growth revised up by 126,000, job growth in private sector was revised down by 4,000.
  • August 2010: 58.5 percent of working age Americans had jobs. August 2012: 58.3 percent of working age Americans had jobs.
  • 38,000 manufacturing jobs lost since August
  • Black unemployment January 2009: 12.6 percent … Sept 2012: 13.4 percent
  • 114,000 jobs created in September is below the average created this year, which was 146,000.
  • 114,000 jobs created in September is below the average created last year, which was 153,000.
  • U-6 unemployment number, which reflects the entire lab
    or situation, was basically unchanged at 14.7 percent.
  • If labor participation was where Obama had inherited it from George W. Bush, the unemployment rate would be closer to 11 percent.
  • Part-time people employment jumped from 582,000 to 8,613,000, the most since October 2011, and the largest one month jump since February 2009. That means the quality of jobs people are finding is dropping.
  • And a comparison: During the Ronald Reagan recovery the country average around 275,000 new jobs a month.
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