About the September Jobs Report:
When it was proclaimed today that the U.S. jobless rate fell to 7.8% the lowest since 2009 giving Obama a potential boost, one must look at how the number was derived.
One must consider how the numbers are calculated, the lower number was derived using the Bureau of Labor Statistics U-3 numbers rather than the more accurate U-6 numbers which gives a more accurate assessment.
This comes as no surprise as the U-3 numbers have been used all along.
Using U-6 numbers from the Bureau of Labor Statistics, following the recent release, 14.7 % of Americans still remain unemployed or under employed, the same as in August.
Consider: Nevada’s U-6 rate is 22.1 percent, up from just 7.6 percent in 2007. Economically troubled California has a 20.3 percent real rate, while Rhode Island is at 18.3 percent, more than double its 8.3 percent rate in 2007.
Those numbers compare especially unfavorably to the national rate, high in itself at 14.9 percent though off its record peak of 17.2 percent in October 2009.
Labor Secretary Hilda Solis was asked on CNBC about suspicions that the Obama administration might have skewed the jobs numbers to aid Obama’s re-election prospects.
“I’m insulted when I hear that because we have a very professional civil service,” Solis said. “I have the highest regard for our professionals that do the calculations at the (Bureau of Labor Statistics). They are trained economists.”
That’s my story and I’m sticking to it, I’m J.C. and I approve this message.