Last Friday, we got the latest phony jobs report from the Bureau of Labor Statistics of the U.S. Department of Labor. The BLS reported without blushing that the U.S. economy created 175,000 new jobs in May. This occurred while the unemployment rate did not change, remaining at 7.6 percent, and the number of unemployed did not change.
How is this possible? This BLS report comes on the heels of the April report, where the BLS reported that the U.S. economy created 149,000 jobs. The truth? According to the BLS’s own CESBD report, where they guess how many new jobs were created by new businesses they think may have started that month, and then they add this estimated make believe figure to the count that gets reported to us as the new jobs number, huge fudge numbers were added to their count.
In April, 2013, the BLS reported that 149,000 net new U.S. jobs were created. But, they also reported that 193,000 of these were a guess on their part of new jobs created they hope by new business that probably started up in April. Which means the actual count showed the U.S. lost 44,000 net jobs in April (149,000 minus 193,000 fudged figure). For May, the actual count showed that the U.S. lost 30,000 net jobs (175,000 reported less 205,000 fudged figure). This helps explain why unemployment is not going down.
The true new jobs created figures are vastly overstated by the BLS. The numbers they reported the past two months are pure hogwash. However, the U.S. stock market happily bought the lie (it is a sophisticated lie, being that the CESBD figure is the product of a convoluted computer model of guesses and meaningless statistics). Even if there was an inkling of validity to the CESBD adjustment to the new jobs count, anyone who has started a new business can attest to the fact that the wages paid are often far below market, or non-existent.