Job losses up by 125K but unemployment rates dropped by 0.2%?!?!?

money.cnn.com...

So how is it that we lose 125,000 jobs and the unemployment rate drops by 0.2%? What is the point of keeping statistics if they so obviously do not reflect any real world numbers?

Also all the people whose benefits have expired and are no longer being counted.

Zaany just answered the question... when you eliminate people from the unemployment rolls, they are no longer counted under the ridiculous U3 measurement. U6 is the ONLY reliable measure of unemployment and even that statistic has been tortured.

Net result? Don't trust a single thing the government tells you about unemployment. Want some definitive data? Just take a look around your own community and you will get a REAL picture of unemployment. Frak the statistics as they are meaningless!

yeah i mean, this is sheer manipulation. this is some baghdad bob sh*t.

If you believe the America is going down the drain hype, then less and less work will be available, more jobs lost, crime goes up , and of course Fema camps get filled!!!!

Or have i been reading ATS too long ??

The unemployment numbers are showing 625,000 fewer people in the labor force in the last month. Since they no longer collect unemployment benefits, they are considered no longer looking, retired, or something.

In addition the CES Birth-Death model (ya know, where they make wild butt guesses about what's been created but not counted?) added 80,000 jobs in leisure and hospitality (in spite of the devastation of tourism in the Gulf region) and another 24,000 new construction jobs (in spite of the 30% DROP in housing sales).

And don't forget people who are self employed, contractors, go from full time to part time, or get their pay cut do not show up in unemployment either. Big scam, these numbers.

Originally posted by kupoliveson
So how is it that we lose 125,000 jobs and the unemployment rate drops by 0.2%? What is the point of keeping statistics if they so obviously do not reflect any real world numbers?

Aren't the unemployment rates produced by those who are receiving unemployment benefits? Think about the 1.5 million that aren't getting them now and we can see that 1.5 million not getting benefits is a lot greater than 125,000 new people getting benefits.

So, on paper it looks like the unemployment is decreasing when it's actually just that the unemployment benefits are decreasing.

I could be wrong though.

This is an excellent explanation of "unemployed". The only one they missed was self employed. I'm not sure how to embed, help anyone?

www.mint.com...

It fell because 652,000 people gave up on their job searches.

finance.yahoo.com...

My understanding is that there are two different data sets used for these numbers: "In terms of the unemployment rate, what happens is nothing. The unemployment rate is measured by the Household Survey not the Establishment Survey. The Birth/Death Revisions are to the Establishment Survey." - Mike Shedlock "Mish"

[atsimg]http://files.abovetopsecret.com/images/member/1aaec834a376.png[/atsimg]

OP, you should read the Market Ticker everyday and also Zero Hedge.

Great websites that explains it all.

For today's report on REAL unemployment along with explanations..

More important was the decrease in average hourly earnings and the workweek decrease. Both are pointing to a continuation of deflationary pressures. It's not serious - yet - but this isn't what you want to see if the employment situation is supposed to be improving and the economy is supposed to be recovering.

U-6 stands at 16.5%, which is down marginally (0.1%) from last month, while U-3 (the common "unemployment rate") came in at 9.5%.

We've managed a whole one percent improvement off the bottom: we were running around 63-64% from 2000 onward until 2007, we dove to 58%, and now have "recovered" to 59%. The so-called "improvement" in private hiring the last few months haven't moved the needle materially at all - indeed, the "real" improvement came from the first of the year until March.

Since then?

Nothing.

If this is all we've got then the so-called "double dip" is assured. In point of fact, however, there was no material recovery from an employment perspective at all.

Payrolls drop by 125K, jobless rate falls

Classic double think. Less jobs mean lower jobless rate.

I noticed CHRISTOPHER S. RUGABER is an economics writer and not a PH.D, but hey, I'm sure his opinion matters, too.