Saturday, March 17, 2012

Making 9 Million Jobless "Vanish": How The Government Manipulates Unemployment Statistics

Overview

When we look at broad measures of jobs and population, then the beginning of 2012 was one of the worst months in US history, with a total of 2.3 million people losing jobs or leaving the workforce in a single month. Yet, the official unemployment rate showed a decline from 8.5% to 8.3% in January - and was such cheering news that it set off a stock rally.

How can there be such a stark contrast between the cheerful surface and an underlying reality that is getting worse?

The true unemployment picture is hidden by essentially splitting jobless Americans up and putting them inside one of three different "boxes": the official unemployment box, the full unemployment box, and the most obscure box, the workforce participation rate box.

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