Yes the monthly jobs report was released today. We added 0 jobs. Awesome! It’s the end of another recovery summer.
And, oh by the way, the change in total nonfarm payroll employment for June was revised down again (the way it always is) from +46,000 to +20,000, and the change for July was revised from +117,000 to +85,000. I’m sure the experts were surprised.
The economy expanded at an annual pace of only 0.7 percent in the first six months of the year. That was the slowest six months of growth since the recession officially ended in June 2009. Oh, it ended? Most economists forecast that growth may improve to about a 2 percent annual rate in the July-September quarter. But that’s not fast enough to generate many jobs. Are these the same economists that predict the jobs number every month? They’ve yet to get close. Back to jobs, or no jobs.
Hiring fell across many different sectors. Manufacturers cut 3,000 jobs. Construction companies, retailers, and transportation firms also cut workers.
Yet the unemployment rate is still at 9.1%, which we all know is a lie. There are accounting gimmicks at play here. Shocking, I know.
Very simply the government accountants magically shrink the workforce. One gimmick is the Employment-Population Ratio. It is a statistic that takes the ratio of the total working age of the labor force currently employed to the total working age population of a region, municipality or country. The employment ratio is subject to manipulation and may be skewed in order to give the perception that an economy, based on this metric, is performing better then it really is.
The other is the workforce Participation Rate. It’s a measure of the active portion of an economy’s labor force. The participation rate refers to the number of people who are either employed or are actively looking for work. The number of people who are no longer actively searching for work would not be included in the participation rate. In a poor economy many people get discouraged and stop looking for employment, as a result, the participation rate decreases.
By merely eliminating people from these formulas it keeps the unemployment rate down. Just like magic. I feel better, but then, I have a job.