This has been touched on several times, but I don’t think we can be reminded of it enough. The Federal Government LIES its butt off about the real unemployment number.
On Friday, the Labor Department reported that the economy added 165,000 new jobs in April. It also revised February and March data up by a combined 114,000 jobs. The Labor Department brags that the gains helped push the unemployment rate down 0.1 percentage points from March and 0.4 percentage points from January to 7.5%. That would be wonderful news except for it is big flat lie!
The first rule of thumb as always is “never trust the government.” Governments like to paint an overly rosy picture when possible, so when it comes to reporting the “official” unemployment rate (known as U-3 unemployment), that’s exactly what they do.
The U-3 unemployment calculation conveniently leaves out three major factors that skew the true unemployment rate:
- Discouraged: People who have stopped looking for work because they believe that there’s no work available for them.
- Marginally attached: People who’d like to work and are physically able, but haven’t looked for work in the last four years.
- Involuntary part-timers: People who want to work full-time, but can’t find a full-time position.
I’m no economic genius, but if people can’t find work or haven’t looked for work in a few weeks that doesn’t make them any less unemployed. You might be thinking that the government ignores these people because there aren’t enough in each group to sway the calculations, so the time and resources spent tracking them couldn’t be justified. There are actually a staggering number of people in all three categories and the government already tracks all three. The Bureau of Labor Statistics provides the calculation for the real unemployment rate. It’s referred to as U-6 unemployment, but the government chooses to ignore it and the media simply choose not to report it. So it’s not like the journalists and politicians who are peddling the 7.5% figure can use the excuse that they don’t know how to calculate the real number. It’s already done for them!
At the end of April, the tally for discouraged workers stood at 835,000. The total for marginally attached workers reached almost 1.5 million and the number of involuntary part-timers stood at 7.9 million. Add these back into the governments bogus U-3 calculation, the total number of unemployed Americans almost doubles from 11.7 million to 21.9 million. This reflects the real unemployment rate currently checks in at 13.9% and not the widely reported 7.5%.
So here we are in the fifth miserable year of Obama being president and the number of unemployed Americans is still over 21 million. That number hasn’t gone down since Obama took office. Granted; this is the same calculation every White House uses and it was not created just for the lying guru Obama. That being said; no other time in our history has a White House lied so much and the media drink it down like a lap dog. Today’s media perpetuate the lie in honor of their savior Obama. It’s time for the real unemployment number to be reported and the media treat Obama just like they did Bush.