It’s been increasingly clear over the last few months that someone is cooking the books on employment numbers.
It takes 200,000 new jobs per month just to absorb the delta between young people entering the Job Market and older people exiting the market. When “new jobs” are lower than 200,000, and unemployment “falls” there’s an unspoken “adjustment” being made somewhere.
By Tyler Durden | ZeroHedge
One can write lengthy essays, op-eds, and client letters explaining both why the labor force participation rate is plunging due to innocuous reasons such as everyone over 40 retiring yesterday full of jouissance and excitement to begin the sunset phase of their lives using copious life savings earning 0.0001% in interest, or, inversely, why this is one great big propaganda ploy by the BLS to make Obama look good a few short months ahead of the pre-election debt ceiling breach, pardon, his re-election date. We prefer cutting to the chase. Here is today’s chart of the day from BofA, which begs one simple question: when will the two time series recouple, because recouple they will, and how will America react to the realization it was lied to for 2% worth of unemployment “improvement”? The chart says it all.
Looks like both employment stagnation and figuring liars at the BLS to me…