There is more fantasy in the U.S. employment numbers than in a Harry Potter novel. According to the BLS, the U.S. added 120,000 jobs in November 2011 and the unemployment rate fell by 0.4%. This is not possible.
The U.S. economy needs to create approximately 150,000 jobs a month to keep the unemployment rate steady based on new entrants into the labor force (the oft cited 200,000 figure is based on past conditions that are no longer applicable). According to official sources, the U.S. added 131,000 jobs a month in 2011. This is better than in previous years, but still not enough to reduce the unemployment rate. Yet, the BLS (Bureau of Labor Statistics) claims the unemployment rate is dropping and fell from 9.0% to 8.6% in November. How is this possible?
Well, first of all, it isn't. These numbers were created - and "created" is a very appropriate word in this case - by claiming that large numbers of workers left the U.S. labor force. At the same time, the U.S. government has stated that an economic recovery has taken place. A country's labor force does not shrink during recoveries, it grows. This has not happened during the current U.S. "recovery." |