GOOD GRIEF … ONLY 36,000 NEW JOBS CRATED IN JANUARY 2011 …
Welcome to the Barack Obama non-job recovery. The unemployment rate fell from 9.4% to 9.0%; however, only 36,000 new jobs were created in January 2011. WHAT A JOKE! There is no way Obama or any one from his administration or party better be spinning the unemployment rate falling as a positive sign for the economy. 36,000 jobs, that’s it? As Just One Minute states, Obama is focusing on jobs like a laser as he has made promise after promise in SOTU speeches.
The unemployment rate dropped sharply last month to 9 percent, based on a government survey that found that more than a half-million people found work.
A separate survey of company payrolls showed a scant increase of 36,000 net jobs as snowstorms likely hampered hiring. That survey doesn’t count the self-employed.
Harsh snowstorms last month cut into construction employment, which fell by 32,000, the most since May. Transportation and warehousing was also likely affected and fell by 38,000 — the most in a year.
“The thumbprints of the weather were all over this report,” said Neil Dutta, an economist at Bank of America Merrill Lynch. Hiring was suppressed last month and will likely rebound in February, he said.
The AP reported that part of the drop was due to people just giving up. Wrong AP, not part, pretty much all. How on earth can a national unemployment rate fall by .4% and only 36,000 new jobs were created? People are discouraged and have all but given up on searching for jobs.
But part of that drop has occurred as many of those out of work gave up on their job searches. When unemployed people stop looking for jobs, the government no longer counts them as unemployed.
At 64.2%, the labor force participation rate (as a percentage of the total civilian noninstitutional population) is now at a fresh 26 year low, the lowest since March 1984, and is the only reason why the unemployment rate dropped to 9% (labor force declined from 153,690 to 153,186). Those not in the Labor Force has increased from 83.9 million to 86.2 million, or 2.2 million in one year! As for the numerator in the fraction, the number of unemployed, it has plunged from 15 million to 13.9 million in two months! The only reason for this is due to the increasing disenchantment of those who completely fall off the BLS rolls and no longer even try to look for a job.
UPDATE I:CNBC’s Rick Santelli blasts CNBC Panelists for Spinning Jobs Report. The MSM is just incapable of telling the truth under President Obama. They are so in bed with this president that they cannot just say that the economy is terrible, jobs are terrible and Obama’s policies, vision and agenda is a failure. Does any one think if these numbers were presented under a GOP president if the MSM would be spinning them as good?
“[W]e have overwhelming evidence the jobs market is disappointing, and all of you are trying to look for that one half of spaghetti in a 50 lb. spaghetti bowl. This is not great data,” Santelli claimed. “We know that the U6 probably gives you a better indication of the true unemployment rate …”
Santelli continued to criticize the spin: “You know what Steve? You and I both know that the unemployment rate, the labor force moving in and out, those giving up, is really probably your best statistical reason for the drop to 9.0 (percent). And in terms of jobs, you, Mr. Steve Liesman, said if you work just one day. If you stay home but you get paid you’re counted in the data …”
UPDATE II:And right on queue is the NY Times spinning the 9.0% unemployment rate as a comparison to 1983 and Ronalad Reagan. Is it any wonder why no one reads traditional news outlets any more as their reporting is nothing more than liberal, Democrat talking points. How does any one with any common sense think that a 1983 and 2011 comparison can be made with job recovery when Obama has taken the 180 degree opposite position on how to fix an ailing economy?
UPDATE III: Who knew there was different math in Canada than the US?Canada created more jobs in Jan. 2011, 69,200 mew jobs, yet their unemployment rate rose from 7.6% to 7.8%. Does any one really believe the spin that the US’s 9.0% unemployment is not a result of 500,000 individuals leaving the labor force because that have lost hope?
Canada’s job creation in January was more than four times the median forecast, pushing the Canadian dollar to its strongest level since May 2008 and adding to evidence the country’s economic recovery may be accelerating.
Employment rose by 69,200 and the labor force increased by 106,400, Statistics Canada said today in Ottawa. The jobless rate rose to 7.8 percent from December’s 7.6 percent, as more people sought work. Economists forecast 7.6 percent unemployment and job growth of 15,000, according to the median estimates of 25 and 26 economists surveyed by Bloomberg News.
UPDATE IV: Gallup states unemployment at 9.9% and underemplyment at 19.2% … are far cry from the rosey 9.0%.