Saturday, February 4, 2012

Obama Fuzzy Math Brings Unemployment Rate to 8.3%

From the article, "The number of unemployed Americans dropped to 12.8 million, the lowest since January 2009, from 13.1 million in December. Still, the number of those who have been unemployed for 27 weeks or more -- a source of concern for the Fed -- was little changed at 5.52 million and accounted for almost 43 percent of the total." Read the last sentence. The number of workers unemployed for 27 weeks or more is around 5.52 million and that accounts for 43% of the total of the workforce. Obama is using fuzzy math to derive the unemployment rate. 8.3% unemployment rate is a joke. Taking those workers not looking for a job are not including in the equations. Let's not fool ourselves. The economy still sucks

(Bloomberg) The U.S. jobless rate unexpectedly fell in January to the lowest in three years as payrolls climbed more than forecast, casting doubt on the Federal Reserve’s plan to keep interest rates low until late 2014.
The unemployment rate dropped to 8.3 percent, the lowest since February 2009, Labor Department figures showed today in Washington. The 243,000 increase in jobs was the biggest in nine months and exceeded the most optimistic forecast in a Bloomberg News survey. Service industries grew by the most in a year, according to a separate report.
“We’ve reached an important threshold here,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “The recovery is for real.”
Stocks and bond yields jumped on optimism the economy will weather the European debt crisis as an improving labor market fuels household spending. The data, which showed gains from factories to retailers, may boost President Barack Obama’s re- election bid and come a week after Fed Chairman Ben S. Bernanke said unemployment would be slow to decline.
The Standard & Poor’s 500 Index rose 1.5 percent to 1,344.90 at the close of trading in New York, extending the best start to a year since 1987. The index is up 6.9 percent in 2012. The yield on the benchmark 10-year Treasury note climbed to 1.92 percent from 1.82 percent late yesterday.