The latest unemployment numbers are out, and if you’re just reading the headlines, it looks like great news: the unemployment rate dropped, and 243,000 jobs were added last month.
There’s just one problem: it’s not really good news.
This has been an ongoing issue: we cannot trust the unemployment rate number that is released every month, because it is a lie. While 243,000 may (emphasis on the may) be statistically significant, it isn’t nearly enough to produce this large of a drop in the unemployment rate. There must be something else going on…and there is.
The real news is that 1.2 million people have dropped out of the workforce. The lie is in how the unemployment rate is calculated. If people find jobs, then the unemployment rate goes down, but that is not the only thing that factors in. If people give up trying to find a job, they are no longer factored in to the unemployment rate. Under this twisted logic, we could be at full employment if only all of the unemployed would just stop looking for jobs.
This is why reporting unemployment figures in this manner is such a despicable practice: right now, President Obama is realizing a political benefit from something that is bad news for our nation. Our president and the media are trumpeting this as economic recovery, when the evidence points to the exact opposite. But instead of focusing on real economic recovery, we are left fumbling around in the dark, not knowing the truth about what is really going on with our economy.