Wednesday, November 14, 2012

Lies. Damn Lies and Unemployment

The President's 'amen corner', also known as the mainstream media, is reporting today's unemployment figures show that the Obama Administration has now returned the unemployment rate to 7.8% , exactly where it was when President Obama took office in January 2009.

I'm afraid its another case of "lies, damn lies and statistics."

I took a few minutes to look at the underlying data on the Bureau of Labor website. After factoring in over 5 million Americans who have dropped out of the workforce, the real numbers show a disheartening increase of 2.9% in the unemployment rate from 7.8% to 10.7% 

As every small business person knows the economy remains extremely soft.

Here's the seasonally adjusted numbers as released by Dept of Labor

Jan ---2009 Sept --2011 Sept --2012
Eligible population over 16 234,739,000 240,071,000 243,772,000
Participation in work force 154,236,000 154,004,000 155,063,000
Work force participation percentage 65.7 64.1 63.6
Employed 142,187,000 140,107,000 142,974,000
Unemployed 12,049,000 13,897,000 12,089,000
Unemployment rate per Obama Admin 7.8 9.0 7.8

Adjusted for "permanent" unemployed
Percentage Participation at Jan 2009 level 65.7 65.7 65.7
Participation at Jan 09 level 154,236,000 157,726,647 160,158,204
Unemployed at Jan 09 level 12,049,000 17,619,647 17,184,204
Real Unemployment rate %  7.8 11.2 10.7