Spin on Employment Numbers Won't Change Facts: Things Aren't Alright

Includes: AGG, DIA, SPY
by: James Quinn

Here is the link to the BLS report.

The Wall Street, K Street, government and mainstream media (MSM) spin machine is in full fury trying to make you think the employment situation improved dramatically in February. Let’s assess the situation from a factual perspective and see how great it was. We were told it would be spectacular since all the snow in January made people not look for jobs and employers not hire people.

  • I’d love for someone to explain to me how the working age population of the U.S. could grow by 1.9 million people but the civilian labor force declined by 312,000 in the last year. How the hell does that happen?
  • The participation rate of 64.2% and the employment to population ratio of 58.4% are at three decade lows.

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  • Another 87,000 left the workforce, bringing the total to 2,165,000 in the last year. Think about that for one second. In the midst of a supposed recovery, almost 2.2 Americans left the workforce.
  • The government drones that report this crap expect you to believe that the unemployment rate has declined from 9.7% in February 2010 to 8.9% today because somehow the civilian labor force in the U.S. declined by 312,000 in the last year. The country adds 180,000 per month in people of working age, but the civilian labor force declined? This is beyond laughable to the point of criminal.
  • The old birth/death adjustment just happened to add 112,000 phantom jobs of the 192,000 reported. These are supposedly from small businesses that don’t get picked up in the surveys. Do you know any small businesses that are hiring?
  • The part that will never be captured in this government reported propaganda is the fact that any jobs being added are in lower paying positions than the jobs people lost in the last three years. A construction job paying $25 an hour isn’t equal to a McDonald’s minimum wage for flipping burgers.

The MSM won’t let facts get in the way of a good story to spin. Things are not alright. Things are not getting better. Gasoline prices are soaring. Food prices are soaring. Clothing prices are soaring. No amount of spin will change these facts.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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