When Will Governments Tell The Truth
About The World Economy
By Egon von Greyerz
On June 3rd we had another set of figures which although fake, still shocked the financial world.
Non-farm payroll increased by only 38,000, massively lower than any forecast. But add to that 244,000 fictitious jobs created and 484,000 workers which were forced to go from full time to part time work, then we get to a reduction in full time jobs of 690,000! Also, the workforce has grown by 21 million since 2007 but the actual number of employed has grown by only 5 million and out of those only 2 million are full time workers. And the quality of the jobs is also declining dramatically. Since 2007 1.5 million manufacturing jobs have been lost whilst 1.5 million hospitality workers (waiters, restaurant workers etc) have been added. But still, because of the idiocy of how the figures are calculated, the unemployment rate went down from 5% to 4.7%. The fact that people capable of working are leaving the labour force in droves is totally ignored. There are now 95 million Americans capable of working who cannot find a job. And for the ones who have a job, average wages have declined since the 1970s.
The real unemployment rate is of course nowhere near 4.7% but instead 23%.