On Friday, the Bureau of Labor Statistics announced a drop in the unemployment rate from 9.2 percent to 9.1 percent. And that 117,000 jobs were added.
The BLS also noted that there were 38,000 fewer people working in July than in the previous month. So how can it be that the unemployment rate ‘dropped?’
It dropped because the bean counters in Washington have reduced the pool of workers enough to cause the percentage change go in one direction when what is measured is actually going in the opposite direction. The BLS calls this “seasonally adjusted” as modified by the “civilian labor force participation rate.”
[scribd id=61861912 key=key-2inwl0ufhv0awdanz1ti mode=list]
Look what the rate is if Washington used the same method of tracking unemployment that you and I use. Beginning with the active labor force as big as it was when Obama was inaugurated, the unemployment rate would be 11.7%.
If the unemployment rate goes up but is not reported, did it really happen?