If you massage and manipulate numbers just right, you can make them say anything you want. Through detailed and specific exclusions, coupled with generous estimations, you can always provide the statistic that agrees with your hypothesis. The more constrained and manipulated the numbers are, the less value the actually have.
Such is the case with unemployment. The government had redefined unemployment so much, that the actual number isn’t nearly as informative as it once was. Unemployment should refer to people who seek employment but are unable to find it. It gets a little more complicated when considering people who seek full-time employment, but settle for part-time employment. I suggest accounting for the underemployed with a partial-employment offset. Somebody who would like to work full-time (40 hours), but is only able to find part-time work (10 hours), should be considered 1/4 employed. Somebody working 30 hours a week would be considered 3/4 employed. When estimating unemployment, these two workers should be added together to show one employed worker and one unemployed worker. By government standards, both employees are considered fully-employed. The Bureau of Labor Statistics’ (BLS) has redefined unemployment to coincide with popular political agenda, so much so that it is no longer useful.
Only through such refinement can today’s increased jobless rate actually be a good thing.
Employers stepped up job creation in April, expanding payrolls by 290,000, the most in four years. The jobless rate rose to 9.9 percent as people streamed back into the market looking for work. AP
The unemployment rate rose .2% from 9.7 percent in March to 9.9 percent in April. This increased unemployment rate was due to the creation of new jobs! Again, an increase in existing jobs, led to an increase in unemployment. The article continues…
The unemployment rate rose… because 805,000 jobseekers — perhaps feeling better about their prospects — resumed their searches for work.
Because there were no jobs available and people stopped looking, they were no longer counted as unemployed. Now that they have hope, they are considered unemployed. That’s illogical to me. I consider somebody who is able, and has the desire to work, unemployed. Not the government.
For once, the government manipulation of the unemployment number makes progress look like failure. Even though there are more jobs available, unemployment is up!
When I want an accurate estimation of unemployment, I look at John Williams’ Shadow Government Statistics.





