Hey folks, good news!
Another 1.2 million people dropped out the workforce, which means that Bureau of Labor Statistics (BLS) economists can say that unemployment has moved down to 8.3 percent without that messy job-creation thing getting in the way.
That’s been such a bummer for Obama. But now he doesn’t have to worry about his programs actually doing anything, since the invention of the new government BLS math BS to replace the old government BLS math BS makes job creation obsolete. That's just perfect for the Democrats.
Last month when I wrote about the BS the BLS now uses to make unemployment go down, I did the math myself. This time around, I’m letting the folks from ZeroHedge and our contributor Mike Shedlock, do the math for me.
ZeroHedge says that if you add back in the 5 million people who have permanently dropped out the labor force, as reflected in the historical average workforce participations rates, the “implied” unemployment rate is 11.5 percent and rising, not falling.
Workforce participation rates - see chart to right- imply an 11.5 percent unemployment rate, while the "official" BLS rate says unemployment is going down. Typical liberal math.
“It also means that the spread between the reported and implied unemployment rate just soared to a fresh 30 year high of 3.2%,” ZH say. “And that is how with a calculator and just one minute of math, one strips away countless hours of BLS propaganda.”
Last month ZeroHedge reported that the spread between the reported and implied unemployment rate was at 2.9 percent, then “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.”
Indeed, that’s how the story gets worse from here.