Our “Let’s Pretend” Economy: Let’s Pretend “Job Growth Is Best Since 2006”
by Charles Hugh Smith
Instead of just swallowing Ministry of Propaganda swill, let’s examine actual data. If we do that, we find job growth is mostly smoke and mirrors.
The Ministry of Propaganda and its media minions are announcing that “job growth is on a tear” and the “best growth since 2006.” How about we look under the hood of the employment euphoria? Here is an example of the Ministry’s work: Best U.S. employment growth in 12 years Almost all the data agree — labor market’s on a tear.
Over the past six months, the number of people who are employed has risen by 2.3 million — an average of 385,000 per month. That’s the best growth since early 2000, when the dot-com bubble was in full flower.
Since August, the unemployment rate has fallen by 0.8 of a percentage points, to 8.3%. For adults over 25, the jobless rate has fallen to 7%.
In other words, people who generally work full time so they don’t have to share a bunk in a flop house or live in their parents’ basement are almost fully employed, as ‘full employment” typically generates an unemployment rate of 5% just due to churn.
Best since 2000. Oh really? Let’s look at the data as presented by the St. Louis Federal Reserve (FRED). Let’s start with a measure of the workforce, what the Feds politely call the non-institutional population. Note that it rose by 33 million since 2000: