Although the number of unemployed Americans now stands at 12.1 million, the U.S. Bureau of Labor reports that the unemployment rate dipped in September from 8.1 percent to 7.8 percent.
Skeptics pointed out that not only is 7.8 percent unemployment hardly a “real recovery,” but the report reflected an uptick in part-time jobs, the number of self-employed and those who have simply given up their job search and are no longer factored into the statistics. Further, there appears to be a huge disconnect between the modest number of new jobs reported and the significant decrease in the unemployment rate.
The Labor Department said employers added 114,000 jobs in September. It also claims the economy created 86,000 more jobs in July and August than the department had initially estimated. The unemployment rate itself is based on a separate “household survey,” which showed 873,000 new jobs in September.
This must be an anomaly,” former Congressional Budget Office director Doug Holtz-Eakin said after an analysis of the numbers. “It is out of line with any of the other data.” He noted the household survey is smaller, suggesting it is not as reliable, and called the estimate of 873,000 new jobs “implausible.”
Mitt Romney responded to the report saying, “This is not what a real recovery looks like. We created fewer jobs in September than in August, and fewer jobs in August than in July, and we’ve lost over 600,000 manufacturing jobs since President Obama took office. If not for all the people who have simply dropped out of the labor force, the real unemployment rate would be closer to 11%. The results of President Obama’s failed policies are staggering – 23 million Americans struggling for work, nearly one in six living in poverty and 47 million people dependent on food stamps to feed themselves and their families… “
In the months after Obama’s inauguration, the rate rose sharply and had topped 8 percent for 43 straight months.
The October jobs report will be released only four days before Election Day.
This 2008 article Data Fudging 101. The History Of US Government Statistics Manipulation tells the rest of the story about data manipulation and the inaccuracy that prevails in the citing of economic statistics — honed to a fine art during Bill Clinton’s presidency.
Read it. Don’t be conned.