The Obama Boom continues to defy all economic logic. Just when you think the media is giving up on the booming economy theme the Obama Regime puts out a jobs report that makes the media cheer! According to the BLS, the economy added 163,000 jobs. That’s right, despite falling consumer spending, declining factory orders and an anemic GDP growth of 1.5% the economy added more jobs in June than July. Yet despite this increase in jobs, unemployment went up to 8.3%. The U6 number is up to 15%. So what gives? This article explains what occurred.
The U.S. economy followed up a weak second quarter by creating more jobs than expected with 163,000 new positions added in July, but the unemployment rate rose to 8.3 percent.
Markets reacted positively to the announcement, with the stock market surging at the open and safe-haven bond prices plunging. Economists had been expecting 100,000 new jobs.
As the country struggles to gain growth traction, the unemployment rate held above 8 percent for the 41st consecutive month, according to the latest report from the Bureau of Labor Statistics.
Despite the seemingly good news, the report’s household survey showed that the actual amount of Americans working dropped by 195,000, with the net job gain resulting primarily from seasonal adjustments in the establishment survey. The birth-death model, which approximates net job growth from newly added or closed businesses, added 52,000 to the total.
The household survey also showed 150,000 fewer Americans in the workforce.
On a national level, that more encompassing rate edged higher to 15.0 percent.
The household survey showed a drop of 195,000, thus an increase in unemployment. So where did the 163,000 jobs created come from? The BLS used seasonal adjustments to come up with the 163,000 figure. This means that 163,000 jobs where probably not created or the number is lower. Zerohedge explains the seasonal adjustments numbers.
Happy by the headline establishment survey print of 133,245 which says that the US “added” 163,000 jobs in July from 133,082 last month? Consider this: the number was based on a non seasonally adjusted July number of 132,868. This was a 1.248 million drop from the June print. So how did the smoothing work out to make a real plunge into an “adjusted” rise? Simple: the BLS “added” 377K jobs for seasonal purposes. This was the largest seasonal addition in the past decade for a July NFP print in the past decade, possibly ever, as the first chart below shows. But wait, there’s more: the Birth Death adjustment, which adds to the NSA Print to get to the final number, was +52k. How does this compare to July 2011? It is about 1000% higher: the last B/D adjustment was a tiny +5K! In other words, of the 163,000 jobs “added”, 429,000 were based on purely statistical fudging. Doesn’t matter – the flashing red headline is good enough for the algos.
(Hat Tip: Macduff)
In other words, the 163,000 jobs are pure fiction. But it will not matter. The average Joe who is non political and economically ignorant will hear 163,000 jobs created and the media spin that the economy is roaring. This headline will help Obama. Many Conservatives think this election is a slam dunk. It’s not and this number even while make believe will be used to prove the Obama Boom is alive an well.
Do not underestimate what we are up against!
We here at Blogmocracy may know the truth but that doesn’t mean the general public does. We need to spread the truth to our neighbors and friends. It is up to us to counter the propaganda of the Pharonic Regime.