I don't get it.

The new monthly unemployment rate was announced this morning:

 

7.8%

 

My friendly neighborhood Tyler Durden says it's a "Complete preelection 'massaging' farce," but I don't understand how it was done.

Waaah. Why didn't I stay with that statistics course?  I never should have settled for taking an 'Incomplete' rather than sweating it out. Not only did the 'Incomplete' likely turn into an F but to this day I cannot comprehend how statistics are manipulated, except on the most rudimentary level (i.e. fractions).

If you understand this, maybe you can explain it to me. Tyler writes:

 The reason: the biggest reported jump in the number of employed people since January 2003, at +873,000 to 142,974. At least according to the Household data survey, which just happens to be used in the calculation of the unemployment rate. Just little bit off from the Establishment survey of +114,000.

...and the diverging path of U-3 and U-6 unemployment rates.

 

Comments

[Mannie Sherberg]

Recipe for preparing the Miracle Martini (the perfect drink for those who want to achieve under-8% unemployment with only 114,000 new jobs): (1) Into a cocktail shaker, pour one ounce hocus-pocus; (2) add one ounce mumbo-jumbo; (3) add a dash of flim-flam and a dash of hanky-panky; (4) shake vigorously; (5) serve with a sprig of abracadabra. NOTE: Be sure to serve after a disastrous debate performance and just before an election. The Miracle Martini has a tendency to sour very quickly.

[Elan]

Brilliant, Mannie. It should be drunk with a large helping of hopey-changey, and then see how it works out for ya.