The Truth About Unemployment Numbers

A surprisingly honest article on the doctored unemployment numbers ... Here are the article highlights ...

"Since November, the number of Americans counted as employed has grown by 765,000 -
But the number of Americans counted as unemployed has shrunk by much more — almost 1.3 million — during this time. That means the labor force has dropped by 529,000 workers."

"The percentage of adults in the labor force is a figure that economists call the participation rate. It is 64.2 percent, the smallest since 1984."

"the drop in unemployment from 9.8 percent in November to 9 percent in April isn't as good as it looks."

"if the participation rate were as high as it was when the recession began, 66 percent, in December 2007, the unemployment rate could have been as high as 11.5 percent."

"The labor force grew by just 15,000 in April from March — not even enough to keep up with population growth."

"The share of men 20 and older in the labor force peaked long ago, at 89 percent in 1952. It's been falling ever since and is now under 74 percent"

"...the number of factory jobs has dropped 40 percent since peaking in 1979."

"Teenagers .... peak participation rate of 59.3 percent in 1978" fell "to a record low of 33.5 percent in February."











More job seekers give up, reducing unemployment

WASHINGTON – Where did all the workers go?

The labor force — those who have a job or are looking for one — is getting smaller, even though the economy is growing and steadily adding jobs. That trend defies the rules of a normal economic recovery.

Nobody is sure why it's happening. Economists think some of the missing workers have retired, have entered college or are getting by on government disability checks. Others have probably just given up looking for work.

"A small work force means millions of discouraged workers, lower output in the future and a weak recovery," says Rep. Kevin Brady of Texas, the ranking Republican on the Congress' Joint Economic Committee. "Those are unhealthy signs."

By the government's definition, if you quit looking, you're no longer counted as unemployed. And you're no longer part of the labor force.

Since November, the number of Americans counted as employed has grown by 765,000, to just shy of 139 million. The nation has been creating jobs every month as the economy recovers. The economy added 244,000 jobs in April.

But the number of Americans counted as unemployed has shrunk by much more — almost 1.3 million — during this time. That means the labor force has dropped by 529,000 workers.

The percentage of adults in the labor force is a figure that economists call the participation rate. It is 64.2 percent, the smallest since 1984. And that's become a mystery to economists. Normally after a recession, an improving economy lures job seekers back into the labor market. This time, many are staying on the sidelines.

Their decision not to seek work means the drop in unemployment from 9.8 percent in November to 9 percent in April isn't as good as it looks.

http://news.yahoo.com/s/ap/20110602/ap_on_bi_ge/us_economy_missing_workers