Unemployment 5 Times Worse than BLS Reports
By Greg Hunter’s USAWatchdog.com
Friday, the Bureau of Labor Statistics released its latest unemployment numbers. The BLS said, “Nonfarm payroll employment edged down (-85,000) in December, and the unemployment rate was unchanged at 10.0 percent.” Shadow Government Statistics founder, John Williams, looked at the same data the government did and said, “…payrolls likely declined by about 500,000.” That is nearly five times worse unemployment than the government reported last Friday. How can this be? According to the latest report from SGS, part of the reason is due to “BLS assumes jobs lost by companies going out of business are offset by start-up enterprises.” What? The BLS assumes just as many jobs lost are being magically created with new start-up enterprises? I know I just quoted SGS in my last post, but John Williams is one of the few economists that process raw financial data without the government gimmicks and distortions. In most cases, these “gimmicks” make things look better than they really are, and that gives you a false read on the economy. By the way, if you calculate the unemployment rate the way BLS did it before 1994, the real unemployment rate according to SGS jumped to 21.9%.
Think about what just happened with this latest unemployment report. The country has spent or committed trillions of dollars fighting the financial crisis, and we are still losing jobs! The economy should be taking off like a rocket but, instead, it is actually getting worse. I don’t want to be a doom and gloom site, but the facts are what they are. I want people to be armed with knowledge so they won’t make any bad choices with “distorted” information. The only way to prepare and protect you and your family for what is coming is to have good solid analysis. I do not get any compensation from Shadow Government Statistics. I use John Williams as a source because he has been one of the most accurate economists in the country. (For more info on SGS click here.)
The most disturbing thing I see when “distorted” numbers are released is the total acceptance by the mainstream media of government information. When I was at ABC and CNN, government data would go on the air unquestioned and accepted as totally accurate. Isn’t the media supposed to question the government? Why do they allow the government to use gimmicks to make the economy look better than it really is? It is a sad comment on the state of journalism in America. I say the truth is always appropriate, even if it’s bad news.
Heard you on coast to coast. Great site. I tend to link through facebook and Twitter more than the blog, but I plan to link to your site often.
BLS and apparently no one else consideers all the “unemployed” as a result of independent contractors not having work – construction subs, realtors, appraisers, home inspectors, home repair persons, etc. We are not allowed to collect for unemployment because we don’t pay into it, but, we aren’t making much money either. When real estate is good, everyone wants our money to keep THEIR business going, but who is keeping our businesses going?
Thanks for letting me vent!
Heard you on Coast to Coast A.M. Great education. It would seem that the basic problem lies with the apathy & ignorance of Americans, in just about every area of importance. I see where the US is ranked 48th by the World Economic Forum in math & science education. Nearly 1/3 of Americans don’t know how long it takes the Earth to revolve around the sun, according to the National Science Board. I dare say that many Americans can’t give reasonable definitions of Capitalism, Socialism, Fascism, etc.
“BLS assumes jobs lost by companies going out of business are offset by start-up enterprises.”
Whow! I thought we paid BLS to categorize data and post the results. Why are they spinning the results with hunches that are based on prayers for better economic news?
Please keep posting info from SGS as I can’t afford the subscription price. Also, I don’t believe SGS or other sources that you use are doom-and-gloom mongoring if their information has a basis in truth. Most of us hear or read from other sources including the MSM. Balancing the positive news and the negative news is easy–especially when sites like yours are proving to be much more accurate then gubmint reports and “lame-stream-media” analysis.
I remember when the Clinton administration changed the criteria for calculating U3 unemployment. The media kool-aid drinkers painted the change as a positive aspect for the unemployed as fewer people would be unemployed. I will never forget that.
Everytime I hear a report on unemployment or other economic reports, I wonder how much “fudging” the administration has been doing.
Also, I have heard that government spending has a growth factor for the economy between .65 and .9. I have heard these figures since I was in Econ classes in college. I heard an economist refer to these factors about 2 months ago. History proves them to be accurate.
The truth is the truth; it is not doom-and-gloom.