Unemployment rate rises to 11.4% as nearly 91 million Americans out of work force
On Sept. 6, the Bureau of Labor Statistics (BLS) issued their latest job report numbers, with August’s totals missing expectations by 11000. ¬†More importantly however, was the more than 500000 Americans who fell off the unemployment rolls, which increased the total number of people out of work to just under 91 million.
While the Establishment survey data was ugly due to both the miss and the prior downward revisions in the NFP print, the real action was in the Household survey, where we find that the number of people¬†not in the labor force¬†rose by a whopping 516,000 in one month, which in turn increased the total number of people outside the labor force¬†to a record 90.5 million Americans. - Zerohedge
And with that increase of American workers no longer being counted as participating in the work force, the separation between manipulated U3 rates and the actual unemployment rate, widened to a difference of over 4%.
BLS Unemployment rate: ¬†7.3%
Actual unemployment rate including Americans no longer counted in work force: 11.4%
A breakdown of jobs created also shows a disturbing picture. ¬†Of the 169000 jobs created in the month of August, only 8% (14000) were in manufacturing, and no jobs were created in the construction sector. ¬†In fact, the top four areas that saw an increase in employment last month were the healthcare, education, retail, and hospitality industries.
- +44K jobs added in Retail Trade
- +43K added in Education and Health
- +27K added in Leisure and Hospitality
- +17K added in Government
- +13K added in Temp Help services
The Obama administration’s unemployment statistics are based upon counting individuals who have jobs, and those who are recorded on the welfare benefit rolls. ¬†And since more people fall off those rolls each month, and are no longer counted as being unemployed despite the fact they do not work (500000 vs. 1690000), any charade remaining that points to an economic recovery under President Obama is long past, and is no longer even being accepted as truth by investors on Wall Street.
Kenneth Schortgen Jr¬†is¬†a writer for¬†Secretsofthefed.com,¬†Examiner.com, and hosts¬†the popular¬†web blog,¬†The Daily Economist.¬†Ken can also¬†be heard Friday evenings giving an weekly economic report on the¬†Angel Clark radio show.