AP Admits Unemployment Rate Didn’t Really Dip
I must mention this. I finally read the full Associated Press story on the new unemployment numbers, and even the AP admits that unemployment didn’t really dip. “Employers sharply scale back layoffs in July. The unemployment rate dips for the first time in 15 months, sending a strong signal, the worst recession…”
Then you go to the end of the article, buried at the bottom: “The dip in the unemployment rate was the first since April 2008. One of the reasons the rate declined, though, was that hundreds of thousands of people left the labor force. The labor force includes only those who are either employed or are looking for work.” So even AP admits unemployment didn’t really dip. We just had a hell of a lot of people give up looking, and they’re not counted as members of the labor force. That’s what we now know in the BLS figures they put out, Bureau of Labor Statistics. The U6, unemployment 6… Like 9.4% is U3 and that’s people who are employed, looking for work, not employed, on unemployment benefits. U6 is everybody that’s looking for work, on unemployment compensation and those who are no longer looking, they’ve given up, and that rate is 16%. Not 9.4. It is 16, maybe 16.9, but it’s 16 something. And even AP admits unemployment didn’t really dip. It just went off the charts, just went off the unemployment rolls.
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as always,
(Associated Press) spinning wheels, got to go round.
Read more on why the unemployment rate fell despite more job losses
“The Wall Street Journal’s Sudeep Reddy offered the longer answer to this question in a blog post:
The payroll figures — jobs lost — comes from a Labor Department survey of employers. The unemployment rate is measured through a separate survey of households — asking people whether they have a job, whether they want a job and whether they searched for a job (among other things). If people drop out of the labor force, the unemployment rate can decline because fewer people would be considered jobless.
The July household survey showed the civilian labor force shrinking by 422,000 and employment falling 155,000. That translated into 267,000 fewer people listed as unemployed. The labor-force participation rate fell 0.2 percentage point in July to 65.5%
As Reddy notes, the decline in the unemployment rate doesn’t mean unemployment won’t hit 10 percent – in part because signs of improvement in the economy may result in more people entering the workforce, expanding its size overall and effectively pushing the unemployment rate up.”
http://www.cbsnews.com/blogs/2009/08/07/business/econwatch/entry5224352.shtml
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