Friday, October 5, 2012

Labor Force Participation Rate

Those numbers are being questioned.  In the media.  MSNBC?  Of course not.  But CNBC flat out asked the labor secretary were 'the books cooked'!  Check these two links:

Labor report reflecting falling jobless rate stirs campaign firestorm 

Fact Check: Labor Secretary Solis Misleads on Jobs Revisions

So what happened to bring the number down?  I explained quite a bit of that in the previous post.  Anyway, you may wonder exactly is the Labor Force Participation Rate?  Here's a breakdown.  Please note who isn't included:

Answer: The labor force participation rate is the percentage of working-age persons in an economy who:
  • Are employed
  • Are unemployed but looking for a job
Typically "working-age persons" is defined as people between the ages of 16-64. People in those age groups who are not counted as participating in the labor force are typically students, homemakers, and persons under the age of 64 who are retired. In the United States the labor force participation rate is usually around 67-68%.

In January 2009 there were more people participating in the job hunt.  In other words the labor force participation rate was higher.  So how can Obama be bragging about 7.8% being great and almost at 2009 levels?  We know better because fewer people are looking for a job (one of the criteria above) and fewer people today HAVE jobs (another criteria).

I think it is fair to say 7.8% means nothing when you know the facts.  Below is Romney today at a Rally.  Note what he says the true unemployment rate would be today if those who have just given up had not done so.  We need new leadership, America.

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