Washington can’t stop lying. Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.
In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams (www.ShadowStats.com)
wrote that the 288,000 June jobs and 6.1% unemployment rate are “far
removed from common experience and underlying reality.” Payrolls were
overstated by “massive, hidden shifts in seasonal adjustments,” and the
Birth-Death model added the usual phantom jobs.
Williams reports that “the seasonal factors are changed each and
every month as part of the concurrent seasonal-adjustment process, which
is tantamount to a fraud,” as the changes in the seasonal factors can
inflate the jobs number. While the headline numbers always are on a new
basis, the prior reporting is not revised so as to be consistent.
The monthly unemployment rates are not comparable, so one
doesn’t know whether the official U.3 rate (the headline rate that the
financial press reports) went up or down. Moreover, the rate does not count discouraged workers who, unable to find a job, cease looking.