Friday, August 7, 2009
The "BS" in the BLS numbers (Jobs report)
AlphaNinja - The market's up, job losses are down, it's almost the weekend, so here's some bad news.
The 9.4% unemployment number released this morning by the Bureau of Labor Statistics is nonsense. The market loves it, as it was less than the previous month's figure, and less than the expected 9.6%. Unfortunately, the number SHOULD have been 9.6%. The reason the number was low is not that people found jobs, but that they stopped looking for jobs. Now they're not classified as "unemployed" -->>rather they're "not part of the labor force." Got it?
Posted by Brendan Wagner at 12:20 PM