When A Decrease In Unemployment From 10.2% to 10% Is Bad News

The government just announced that unemployment decreased from 10.2% to 10% and 'the media' is all over that as an encouraging sign. Problem is, it's another example how to mislead (ie, lie) with statistics.

Those numbers are based on unemployment compensation information. There are fewer new applications for unemployment and fewer people drawing unemployment. That statistic makes no accounting of why that happens.

First distortion is, there are far more people who have given up looking for a job because they recognize it's a futile effort. They stop drawing unemployment ... but NOT BECAUSE THEY FOUND WORK and NOT BECAUSE THEY DON'T WANT WORK! Estimates for the number of people who've given up until the economy rebounds is in the range of 800,000 people now and is still increasing! That's a huge number of people who are now invisible to the government's 'unemployment numbers'.

Second distortion has to do with the limit on collecting unemployment. After people have collected unemployment up to the maximum allowed, they no longer take money from the government and the government therefore loses all ability to track what they're doing. These people ARE STILL LOOKING FOR WORK but the government can't account for them because they no longer draw unemployment compensation! To that government 'unemployment number' it looks just like these people found work. The number of people in this category (ie, who've been unemployed 27 weeks or longer) increased by 293,000 to 5.9 million, an increase of 2.9%!

THE TRUTH(!) is, unemployment is NOT decreasing and the government AND THE MEDIA should NOT be saying so just because there are fewer people drawing unemployment. That is a statistic that distorts actual truth of what's going on in the job market.

This administration and it's willing accomplices in 'the media' are painting a false picture. The stimulus package HAS NOT TURNED AROUND UNEMPLOYMENT (YET)! Unemployment is still increasing but the GOVERNMENT CHOOSES TO USE A STATISTIC THAT HIDES WHAT'S REALLY HAPPENING. And the government has the nerve to claim or at least imply that unemployment is decreasing ... when THEY KNOW(!) FOR AN ABSOLUTE FACT THAT IT IS NOT! They're not stupid. But they think we are! Gads!