The MSM is again attempting to spin a shitty employment report into a positive. There are two surveys used to generate this government propaganda report. The one survey says that 175,000 new jobs were created in May. Of course, if you hop over to the Birth/Death adjustment page where the BLS drones use an excel spreadsheet model to create jobs out of thin air, you find out where most of the jobs came from:
It seems our friendly drones added 205,000 phantom jobs to their little calculation. These are supposed to represent the number of jobs being created by small businesses that are not captured in their surveys. It is a horrible model at turning points in the economy. It is doing nothing but extrapolating previous extrapolations. Small businesses are closing up shop in record numbers. Obamacare, higher taxes, lower consumer spending and higher prices are destroying small businesses. They are not hiring. They are firing and laying off. They did not add 205,000 jobs in May. Therefore, the reported 175,000 jobs is a lie. They are also not touting the fact that their previous lie of 165,000 jobs in April was “ADJUSTED” down to 149,000 ( to be adjusted lower in the months to follow).
And look at the kinds of jobs being created:
- 26,000 temp jobs
- 38,000 McDonalds fry cook jobs
- 28,000 Wal-Mart greeter jobs
There were no jobs added in productive industries like manufacturing, construction, mining, logging, trucking or warehousing. Sounds like a great economic recovery to me. Low paying part time temp jobs will surely boost consumer spending.
And now to the other report. I love the spin in their press release. They say the unemployment rate was virtually unchanged when it really went up. The number of unemployed people went up by 100,000. The participation rate and employment to population ratio remain at three decade lows. Here are a couple more tidbits:
- There are 570,000 more people employed than last October, but the working age population has risen by 1.4 million. Miraculously, the unemployment rate as FALLEN from 7.9% to 7.6% over this time frame. How could that be? Well, according to the BLS drones 1.3 million working age Americans (18 to 64) have willingly left the labor market because their lives are so good, they don’t need to work anymore.
- 1.7 million lucky Americans have left the labor force in the last year.
- Real wages continue to fall month after month, year after year.
- Companies are shifting full time workers to part time workers to avoid the massive cost increases coming down the pike from Obamacare. That’s a fact jack.
The Wall Street shysters and CNBC dumbasses will attempt to convince you this is good news and it’s time to buy stocks. Employment is a lagging indicator. We are in recession and employment will not be growing in the foreseeable future.
175K May Non-Farm Payrolls Small Beat, April Revised Down; Unemployment Rate Of 7.6% Higher Than Expected
Submitted by Tyler Durden on 06/07/2013 08:34 -0400
Those hoping for a decisive jump or plunge in the NFP number will be disappointed with the May NFP printing at 175K, on expectations of 165K, even as the April number was revised from 165K to 149K, and a net March-April revised change of -12K. The Unemployment rate was 7.6% higher than the expected 7.5%, driven by a tiny increase in the Labor Force Participation rate from 63.3% to 63.4%. But once again it is the quality component of the jobs that was weak with Average Hourly Earnings missing expectations of a 0.2% increase (up from 0.2% last month), instead staying flat to the April number.
Charting the trend:
And the average hourly wages:
From the report:
Both the number of unemployed persons, at 11.8 million, and the unemployment rate, at 7.6 percent, were essentially unchanged in May.
Among the major worker groups, the unemployment rates for adult men (7.2 percent), adult women (6.5 percent), teenagers (24.5 percent), whites (6.7 percent), blacks (13.5 percent), and Hispanics (9.1 percent) showed little or no change in May. The jobless rate for Asians was 4.3 percent (not seasonally adjusted), little changed from a year earlier. (See tables A-1, A-2, and A-3.)
In May, the number of long-term unemployed (those jobless for 27 weeks or more) was unchanged at 4.4 million. These individuals accounted for 37.3 percent of the unemployed. Over the past 12 months, the number of long-term unemployed has declined by 1.0 million. (See table A-12.)
The civilian labor force rose by 420,000 to 155.7 million in May; however, the labor force participation rate was little changed at 63.4 percent. Over the year, the labor force participation rate has declined by 0.4 percentage point. The employment-population ratio was unchanged in May at 58.6 percent and has shown little movement, on net, over the past year. (See table A-1.)
In May, the number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was unchanged at 7.9 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job. (See table A-8.)
In May, 2.2 million persons were marginally attached to the labor force, down from 2.4 million a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)
And the Labor force participation rate: