The Obama administration released the unemployment figures again today and magically the unemployment rate remained at 9.1-percent, despite only adding 103,000 jobs, and loosing over 400,000 jobs yet again. The internals of the numbers paint an even worse picture; 45,000 of the jobs added were striking union members from Verizon finally returning to work, thus making the real jobs added a paltry 58,000.
With the economy routinely loosing far more jobs than it adds, you have to ask how the unemployment number can remain stable at 9.1-percent? The reason for this is that the Obama administration is arbitrarily counting the number of jobs that exist.
In 2008 the labor force was determined to be 154-million people according to the U.S. Bureau of Labor and Statistics. This number was determined by adding the number of employed, which was 145-million people, to the umber of unemployed, which was 9-million people, for a total of 154 million people.
The Bureau of Labor and Statistics is using the same method today, however, they are still basing the unemployment rate on 154-million people being employable despite population growth of more than 7-million people over the last three years and more than 27-million over the last decade. So how can the basis for employment remain the same when the population has experienced such tremendous growth?
Exacerbating this even further is that the federal government only tracks people who are receiving unemployment benefits as being officially unemployed. If we take a look at Shadow Stats.com which tracks the unemployment rate the way it was done before the Clinton Administration changed the formula so that the unemployment rate no longer incorporated the U6 (those unemployed over six months) we see that real unemployment is nearly 25-percent.
Article originally appeared at ToddKinsey.com