7.9% – 122,000 Net Jobs Lost = 7.7% UR?
You may be asking yourself just how the math in the title makes sense. First, forget most of what you leaned in your high school economics class, this is ‘political math 101′ and it is almost exclusively learned by strict adherence to an ideological stream of propaganda flowing from D.C. and repeated ad nauseum in the media. You see, first you remove the 540,000 (1/2 million+) people from the labor force who have given up on finding a job. That shrinks the total number of people still working or trying to find work pretty dramatically. Then you divide that new, much lower number by the number of them that still haven’t found the work they’re looking for and abracadabra, the new unemployment rate is actually lower by .2% than last month even though their are 122,000 net lost jobs in the same period of time.
But internally, the report showed weakness.
The numbers had some puzzling contradictions, particularly in the assertion that Sandy “did not substantively impact” the jobs count for November, and in substantial downward revisions from previous months.
Also, the drop in the unemployment rate appeared to reflect little more than a continued exodus of workers from the labor force.