Saturday, January 7, 2012

Yet another Obama unemployment sleight of hand!

By John Sykes

Yesterday, in As Obama obfuscates, keep your eyes on the recessionary ball!, I presented one way to counter Obamanite chortling about jobs increases by emphasizing the duration and shallowness of the current recovery.

Obama Unemployment Magic Trick: Indefinitely Detain 4 Million People from Workforce presents another very striking example of Obama Administration tactics to artificially lower unemployment numbers by artificially deflating our labor participation rate. That deflation is more than obvious in this chart which you can click on to expand:

In simpler terms, to obfuscate the unemployment numbers, lower the denominator of this equation:

Those Not Working / Labor Force Participation

Moreover:

Just using the average participation rate of 65.8 percent since 1980 supplied by Zero Hedge, there are 4.4 million workers missing from the work force. Zero Hedge predicts that if the BLS keeps dropping the workforce number at the current rate, unemployment will hit zero just prior to the general election no matter how many jobs Obama “saves”.

It won't surprise anyone that as of December, the real implied unemployment rate was 11.4% - basically where it has been ever since 2009 - and at 2.9% delta to reported, represents the widest divergence to reported data since the early 1980s. And because we know this will be the next question, extending this lunacy, America will officially have no unemployed, when the Labor Force Participation rate hits 58.5%, which should be just before the presidential election.