Business News- Top Story- 9.7% unemployment rate really 10.6%

When the Obama Admin announced the unemployment rate hade fallen to 9.7%, most of the country welcomed the good news.  But upon closer examination, the reported 9.7% figure is an accounting trick, masking the real number, not a .3% fall, but a .5% RISE to 10.6%.  Here is how:

Unemployment Data – January Report Includes New Survey Methodology- rebel traders

The unemployment rate drops to 9.7%. But, the BLS changed the survey calculations in this latest unemployment report, and had it not been for the ‘new’ changes the unemployment rate is 10.6%.

JAN UNEMPLOYMENT RATE: 9.7% V 10.0%E (Note 10.6% without changes in survey)

- Note: data subject to changes due to new calculation of Unemployment using a household survey, which is said to capture small business data better than the employment survey.

Revisions to Establishment Survey Data

In accordance with annual practice, the establishment survey data have been
revised to reflect comprehensive universe counts of payroll jobs, or benchmarks.
These counts are derived principally from unemployment insurance tax records
for March 2009. As a result of the benchmark process, all data series were
subject to revision from April 2008 forward, the time period since the last
benchmark was established. In addition, with this release, the seasonally
adjusted establishment survey data from January 2005 forward were subject to
revision due to the introduction of updated seasonal adjustment factors.

Table A presents revised total nonfarm employment data on a seasonally adjust-
ed basis for January through December 2009. The revised data for April 2009
forward incorporate the effect of applying the rate of change measured by the
sample to the new benchmark level, as well as updated net business birth/death
model adjustments and new seasonal adjustment factors. The November and
December 2009 revisions also reflect the routine incorporation of additional
sample receipts into the November final and December second preliminary
estimates. The total nonfarm employment level for March 2009 was revised down-
ward by 902,000 (930,000 on a seasonally adjusted basis), or 0.7 percent. The
previously published level for December 2009 was revised downward 1,390,000
(1,363,000 on a seasonally adjusted basis).[…]

But it gets worse:

http://blog.rebeltraders.net/2010/02/05/unemployment-data-january-report-includes-new-survey-methodology/

Jobs and the Unemployment Rate- Calculated Risk

How could there be fewer payroll jobs, but the unemployment rate declined? This is because the data comes from two separate surveys. The establishment survey showed a loss of 20,000 payroll jobs in January, but the household survey showed an increase in the employment level of 541,000.

The number to use for jobs is the establishment survey, but the unemployment number is based on the household survey. The two surveys can diverge over the short period, but over time it will all work out. This was a hot topic last year when the unemployment rate decline to 9.4% in July, and some commentators wondered if the unemployment rate had peaked (see: Unemployment and Net Jobs).

http://www.calculatedriskblog.com/2010/02/jobs-and-unemployment-rate.html

It defies logic, as American Spectator points out:

Jan. Unemployment Rate Drops to 9.7 Percent, Economy Loses 20K Jobs- American Spectator

Now we have an unemployment figure that drops a tiny .3 percent, while we still LOSE jobs, and the prior numbers have been cooked by withholding the reporting of an additional 700,000 jobs over the last year. Add to that no one is even factoring in the blip in employment caused by the Christmas Season. Those layoffs start just after inventory season ends.

This means that none of the major calculations for determining the health of the economy are even remotely reliable. They are in fact false statistics that might well just be scribbled on paper and pushed to the various propaganda organs for the consumption of the masses.

http://spectator.org/blog/2010/02/05/jan-unemployment-rate-drops-to

The real figure is this:

Business News- Obama- 10.6% unemployment rate reported as 9.7% after creative math by government- Top Story

6. February 2010 by admin.

9.7% – What’s Wrong With That Figure?- Red State

….10.1% unemployment….has magically gone down to 9.7% despite the government’s own ‘adjusted’ figures for last year, showing an increase of unemployment from about 7.5 million jobs lost during this recession to EIGHT POINT FOUR MILLION. Jobs lost in December were revised from 85,000 to ONE HUNDRED FIFTY THOUSAND….

Editor Note: Factoring in the real available jobs numbers at 135 million instead of 129 mil the govt data is using, the real unemployment rate os 10.6%

Posted in christian news, World Business News, Scott Brown, gov news, business news, US News, blog news, obama news, Freedom News

The Business Sector has already cast serious doubts at this magically produced number

The moral of the story is this: Never trust numbers released by an administration hell-bent on manipulation and propaganda to fool the American people to buy their fascist, socialist agenda

Buzz this!

Short URL: http://freedomist.com/?p=1666