The federal government said employment increased by 120,000 in November (an increase of less than 1/1,000th) and the unemployment rate fell by 0.4% ? Baloney. It is a statistical lie aimed at making it sound as if the economy is growing.
Indeed, Bloomberg reported that 315,000 people left the workforce — meaning the number of dropouts was nearly triple the net gain in jobs....
.... But this figure from the Bureau of Labor Statistics is bogus.
CNBC's Jeff Cox explains:
... the unemployment rate slid to 8.6 percent ... from the previous month's 9.0 percent, a move which in part reflected a drop in those looking for jobs.
The participation rate dropped to 64 percent, from 64.2 percent in October.
....The drop in participation rate is significant in that had the labor force remained steady, the jobless rate would have dropped to 8.8 percent... If the labor force had followed trend growth, unemployment would be at 8.9 percent.
"Overall, the continued modest employment gains reflect an economy that plods along at an uninspiring pace," Kathy Bostjancic, director of macroeconomic analysis at The Conference Board, said in a statement.
"These modest job gains are still not enough to propel economic growth to a sustainable 2 percent-plus growth path."
Now back to Mr. Surber:
Politically, this is of course a godsend for the president. This should send his approval rate past 50% again for the first time since May when he personally stalked, surprised and shot Osama bin Laden and then played a round of golf with his head. I do not buy that a president needs the unemployment rate to be below 7.2% to win re-election. Jerry Ford almost pulled it off despite 7.8% unemployment.
All a president need do is show progress on the economy, as President Reagan did in 1984....