Friday, September 07, 2012
The August Jobs Report - Awful!
President Obama got a real life rebuke the day after his abysmal acceptance speech in the form of a toxic August jobs report.
As Mitt Romney aptly put it, if yesterday was the party for the Democrats, today is the hangover.
Unemployment remains at 8.1%, and remember, that''s the cooked 'official' U-3 unemployment rate. It accounts only for the people who are receiving or have applied for unemployment benefits and are actively seeking work.
The U-6 rate, which government never trumpets is a lot closer to reality. It includes people no longer actively seeking employment, people who are not covered by unemployment, like people hired as independent contractors or the owner of the small dry cleaning business or restaurant that closed its doors in your neighborhood last week or people let go with not enough quarters of employment to qualify for benefits or from part time and seasonal jobs. That rate as of August 31 2012 is a whopping 14.7 %!
Not only that, but the rate is artificially low because of the historic drop in labor force participation AKA thenumber of people available toworkif the jobs are available. Simply put, if you have a certain amount of water in a glass and then just transfer the water to a smaller glass, the portion of the glass that's filled seems bigger, even if it really isn't.
368,000 Americans dropped out of the labor force last month, which brings the number of Americans the U.S. Department of Labor counts as part of the labor force - those people if they are at least 16, are not in the military or an institution such as a prison, mental hospital or nursing home, and whom either do have a job or have actively looked for one in the last four weeks - to an historic record of 88,921,000 Americans, with a net 119,000 fewer peopl employed in August than in July. If the lqabor force partivcipation had stayed the same instead of falling of precipitously, the cooked U-3 unemployment rate would have been 8.4 %.
Even worse, the Labor Department also revised the employment numbers for June and July admitting that 41,000 fewer jobs were created in than they previously reported.
This isn't as picture of even a mild recovery no matter what the spin dopctors at the White House tell you. It's a portrait of a stagnant economy going nowhere with the wheels starting to come off.
And President Obama wants to cripple it even further by assessing more taxes - ooops, sorry, 'new revenues' - implementing the tax increases inherent in ObamaCare and borrowing more money for green energy scams run by his donor cronies.
If America was a corporation, it would already be in receivership, and this president would have been fired a long time ago for gross misconduct and willful negligence, not to mention being sued in civil court for damages.