We got the report from the Bureau of Labor Statistics that unemployment fell in January to 9.0% while the economy added 36,000 jobs. There are two key problems with these numbers.
First of all, we have deep suspicions about the data the administration is giving. We’re to the point where we need private polling agencies to give us a more accurate picture of the economy. And Gallup is reporting that the January unemployment rate is 9.8% and the underemployment rate is 19%. Those are more believable numbers.
(see – more funny numbers in February jobs report)
But another big part of what we’re not being told is related to an earlier post I wrote about December unemployment numbers. And that is that we need 130,000 jobs each month just to keep up with population growth.
The American labor force is just over 150 million workers, and it grows at the rate of 1% per year. That’s over 1.5 million jobs that need to be created each year, just to keep pace, or about 130,000 per month. So at 36,000 new jobs in January, that’s not enough to absorb the new people entering the work force, so we’re actually falling further and further behind.
And then, of course, there’s the obvious little tidbit that Obama will never admit, and that is that the official unemployment percent is down because people have given up looking.
Officially, the recession was over 19 months ago. But the unemployment bleeding has yet to stop.