Doug Ross has the real story on the new government jobs report, in which the feds claim that the economy created 431,000 jobs in May and the unemployment rate dropped to 9.7 percent…
The hundreds of administration-approved press releases can’t hide the true scale of the unfolding economic disaster. More Americans are unemployed than ever, they are unemployed longer, and if you don’t count temporary Census jobs and the BLS’ mathematical skulduggery, the gravity of the situation becomes obvious.
Consider the makeup of the official “431,000 jobs added” number (and never mind the fact that some were touting an expectation of 700,000 new jobs):
• 411,000 were census jobs
• 31,000 were temporary help services (BP clean-up hires?)
• 215,000 jobs were “created” using the BLS “birth-death” mathematical model
If you remove the 657,000 temporary and formula jobs from the reported 431,000 jobs added, you’re left with a stunning stat:
The economy actually lost 226,000 jobs last month.
And 322,000 folks stopped looking for jobs, which seems to have helped drop the unemployment number as well.
Ross’ reaction seems to be the correct one, as the stock market took a dump upon the release of those numbers this morning.
A double-dip recession looks fairly certain at this point. When the census and other temp jobs are over, it seems quite likely the unemployment rate will skyrocket regardless of whether folks stop looking.
And what happens in January when tax rates go up across the board?