Thread: News jobs "magically" vanish

News jobs "magically" vanish
Posted Jul 03 2008, 10:48 AM
by Todd Harrison
Filed under: Government, Jobs

Rating: The birth-death "adjustment" added 177,000 jobs to the latest report, which put the total adjustment for the year at 600,000 new jobs -- or so the government claims.

Of course, it arrived at this number through a completely flawed methodology: At the end of the year, these numbers will quietly be backed out - just as they were last year. Even given these manufactured numbers, employment decline is consistent with recession.

The government only has statistics for jobs that are lost by small businesses; it gets this information from employment insurance numbers, etc. It has no information about how many jobs are created. Thus, it makes it up.

The government just assumes that for every job lost, there's one added -- and then it adds that back to the jobs number.

This logic is flawed, to say the least.

In a recession, does it make sense that jobs would be created at the same rate at which they're lost? Of course not, but that's how government bureaucrats think and act -- just one reason we're in so much trouble.

It's not reality, but manipulation, pure and simple. If you recall, the government very quietly acknowledged that all those birth and death assumptions were false at the end of last year. No one seemed to notice this, of course.

But presto! Over a million jobs it claimed were created vanished into thin air.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by the aptly-named Mr. Practical, a Minyanville Professor. Click here to read his most current article, How the Bubble Bursts.

http://blogs.moneycentral.msn.com/topst ... anish.aspx

All I know is is a part time Wal-Mart greeter job isn't a substitute for a full time factory job.