Labor Force Participation and Unemployment Propaganda
The now painfully grotesque propaganda that the US unemployment rate is “improving” has become laughable to those who understand the real numbers, the numbers prior to sifting through propaganda filters and then fed to the press…
A soaring stock market? An ongoing recovery? Beware…
A few headlines captured from ZeroHedge.com this morning reveals a taste of what’s really going on in the U.S. economy.
We remain on the razor edge of systemic collapse, all the more reason to be prepared and to maintain situational awareness of economic events and the fact that what we are fed in the mainstream is designed to convince you that everything is A-okay…
Real March Unemployment Rate: 11.6%
Today, we got the laughable news that the unemployment rate declined even as the labor force grew by over 660,000, while the total population grew by just 167,000 to 244,995, meaning the actual labor force declined by 496,000.
Which is precisely the issue: fudging the labor force participation rate is how the Obama administration has managed to maintain the myth the economy has grown under his leadership for the past 4+ years. It hasn’t, and in fact if one re-normalizes for the recent long-term average participation rate of 65.8%, one gets a very different number.
How different? A difference that is now at a record compared to what is reported.
A “renormalization” process indicates a massive and record 4% difference between the reported unemployment rate of 7.6%, and what the real unemployment rate is assuming normal growth of the labor force, which in March was 11.6%, up from 11.3% in February, and the highest since August 2012 when it was 11.7%.
More importantly, as the real unemployment chart shows, the economy has not improved by one bit since 2009!
People Not In Labor Force Soar By 663,000 To 90 Million, Labor Force Participation Rate At 1979 Levels
Things just keep getting worse for the American worker. The number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work.
And even worse, the labor force participation rate plunged from an already abysmal 63.5% to 63.3% – the lowest since 1979!
Payrolls Plunge To 88K, Biggest Miss Since December 2009, Participation Rate At New 30 Year Low
So much for “open-ended QE driven recovery”.
Moments ago the March Non-farm payroll hit and it was a doozy, printing at 88K, below the lowest forecast of 100K, well below the expected number of 190K, and a tragedy compared to the February revised print of 268K (was 236K).
This was the biggest miss to expectations since December 2009 and the worst print since June 2012.
The unemployment rate declined to 7.6%, but this was due entirely to the collapse in the labor force participation rate, which declined by 20 bps to 63.3%, a new 30 year low.