Last week the Bush Labor Dept released unemployment numbers nearly double what was expected. Now, this week, the NY Post’s John Crudele writes that the real number is – hang onto your hats – 147,000. The difference is pure smoke.
[T]he total loss was 147,000 when you include revisions that were made to previous months.
Not scared yet?
Well, the government kept last Friday’s reported loss at just 80,000 by adding 142,000 make-believe jobs to the count.
Those are positions that the Labor Department believes but can’t prove were created by newly formed companies that are beyond the surveying abilities of the government.
That little bit of razzle-dazzle is called the Current Employment Statistics Birth/Death Model, and you can look up that 142,000 number if you don’t believe me.
Previously the government added 135,000 jobs to the February job count, which lessened the loss in that month.
Ooooooh. So that’s how it’s done. Is there any reality at all in those…um…projections? Well, probably not.
A closer look shows why these birth/death assumptions are so preposterous.
According to the government, 28,000 jobs were quietly created – but couldn’t be officially counted – last month in the construction industry.
Construction! And that’s despite the fact that the homebuilding industry nationwide is flat on the seat of its Levis.
And through birth/death modeling the Labor Department would also like you to believe that 6,000 new jobs were created in “financial activities.”
Unless the government is talking about the hiring of a new crop of bankruptcy attorneys that’s absolutely crazy.
And then there’s the addition of 23,000 jobs in what the government calls “professional and business services” – in short, consultants.
People lose their corporate positions and go out on their own – and the Labor Department thinks this is actually a new job.
So the numbers - which we already knew were cooked because they don’t include people whose unemployment has run out, people who have taken part-time jobs because they can’t find full-time work, people who gave up looking for a job altogether, and people who had to take menial labor far beneath their training and previous pay-rate – are actually hopelessly skewed by the inclusion of tens of thoousands of fantasy jobs?
Well, um…yeah. So this is the Bush Administration. So what’d you expect? Honesty?