Employment v Unemployment – November 2012

With another 350,000 leaving the work force, the useless figure called the unemployment rate ticked down again in November 2012 to 7.7%.  Previous months, however, were also revised downward, and we can expect the same for the current month.  Problems?

For instance, labor force participation fell sharply. Indeed, the sole reason for a decline in the unemployment rate was a drop of 350,000 in the number of people in the labor force.

So, why even pay attention to the Unemployment Rate.  There is only one graph that really matters and shows a much more true picture of the Employment situation in the U.S. — The Labor Force Participation Rate:

Compliments of the Obama Stimulus, Auto Bailout, Recovery Summer, TARP, Cash For Clunkers, EPA, High Gas Prices and every other constraint the Obama Administration has put on our economy, the Labor Force Participation rate has fallen off the cliff and continues to decline:

Employment v Unemployment 20121130 - 01

Obama’s Labor Force Participation Rate is the lowest since Jimmy Carter’s 63% rates — another complete failure as a jobs president.

Yes, I would gladly go back to the Clinton Era 67% Employment Rates, 18% of GDP Spending Rates, and his reduction to 15% in the Capital Gains Tax Rate… …and if we didn’t increase to Clinton’s 39% Income Tax Rate, his figures would be even better!

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About bbollmann
A Missouri Conservative who like to rock... ...especially to the great music of Rush!

One Response to Employment v Unemployment – November 2012

  1. tall_progressive says:

    There’s no question that the unemployment rate is an imperfect statistic, but aren’t they all?

    Don’t you think that saying “there’s only one graph that matters” is an equally narrow-minded view of how to look at our economy? Only looking at the Labor Force participation rate and not other stats is a bit of a reach.

    Let’s take a look at November 2010. Then, the LFPR was 64.5%, but our unemployment was 9.9%. Now are LFPR is 63.6% but our unemployment is 7.7%. It’s safe to say our economy as a whole is much better today than then. But if we only look at the LFPR then you might think otherwise.

    I’m not saying we should ignore it, and you were right to bring up the facts. I’m saying we should try to look at many statistics to have a more broad view. Where I really agree with you is that even though our unemployment rate has dropped, we should not act like everything is great (my liberal/progressive friends need to realize this). Where we disagree is how to fix it. Good read.

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