Employment rate drop caused by 600000 new part time workers, Unemployment rate .3 percent drop, Real jobs added 114000, Involuntary part time workers not good news
“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012
“People leaving the labor force were a big reason that North Carolina’s unemployment rate dropped to 9.4 percent in April, a month when only 1,400 more people got jobs.”…WRAL May 18, 2012
“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:
Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
Here is the answer to the .3 percent unemployment rate drop from 8.1 percent in August to 7.8 percent in September.
From the US Labor Department October 5, 2012.
“Total employment rose by 873,000 in September, following 3 months of little
change. The employment-population ratio increased by 0.4 percentage point to
58.7 percent, after edging down in the prior 2 months. The overall trend in
the employment-population ratio for this year has been flat. The civilian labor
force rose by 418,000 to 155.1 million in September, while the labor force
participation rate was little changed at 63.6 percent. (See table A-1.)
The number of persons employed part time for economic reasons (sometimes
referred to as involuntary part-time workers) rose from 8.0 million in August
to 8.6 million in September. These individuals were working part time because
their hours had been cut back or because they were unable to find a full-time
Part time workers included in employed category.
“Household survey. The sample is selected to reflect the entire
civilian noninstitutional population. Based on responses to a series
of questions on work and job search activities, each person 16 years
and over in a sample household is classified as employed, unemployed,
or not in the labor force.
People are classified as employed if they did any work at all as paid
employees during the reference week; worked in their own business,
profession, or on their own farm; or worked without pay at least 15
hours in a family business or farm. People are also counted as employed
if they were temporarily absent from their jobs because of illness, bad
weather, vacation, labor-management disputes, or personal reasons.”
“Establishment survey. The sample establishments are drawn from private
nonfarm businesses such as factories, offices, and stores, as well as
from federal, state, and local government entities. Employees on nonfarm
payrolls are those who received pay for any part of the reference pay
period, including persons on paid leave.”
600,000 new part time jobs in September.
But this is why:
“These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.”
Where I come from, this is not good news.
Obviously there are more components of this voodoo mathematics.
Here are some interesting facts: