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By - January 8, 2011

The Unemployment Numbers Game

Author:  Wayne Schmid

Statistics don’t lie, Statisticians do. That cliche’ is never more appropriate than with the current President and his administration.

Jan 7th the new unemployment numbers came out and on first glance it looks promising.  The new unemployment rate (U-3 number) is 9.4% down from 9.8%.  The willing accomplices in the media explain that the drop in the number was unexpected and leave the impression that Obama’s economy is starting to roar.

President Obama, as would be expected, wouldn’t miss a chance to highlight the drop in the number.  He came to the media quicker at a speed that would have made even Jesse Jackson proud.  This is an example of how Obama’s economic plan is working is how it was spun.

Now, take a step back.  House valuations continue to drop, bankruptcies continue to set records, retailers made a lot less than expected in December and consumer confidence in down again.  With all that negative economic news, how can employment be picking up?

Gallup has the answer.  The unemployment rate that we usually hear about is measured by how many people apply for unemployment.  Therefore, if you don’t apply you are not counted as unemployed.  A measure of the unemployed, underemployed and those who have dropped out of the employment search shows the unemployment number at 19% up from 17%.

What is going on here?  One number is down, the other is up.  The answer: A great number of people have simply dropped out of the hunt for a job.  That brings the total number of those applying for unemployment down.  This is not because they found a job but because they have stopped looking.

I hate to be the bearer of bad news, but the truth is the only answer.  Unfortunately this administration and particularly this president are no friend of the truth.

For those of you wondering when to believe President Obama and how do you know when he is lying, there is one thing I have noticed Obama does when he lies  and when he does this you know he is lying.  Look for this clue…….he opens his mouth.

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