Despite kicking half a million people off the rolls the month before, the Labor Department reports the unemployment rate for May rose by 0.1 percent to 8.2 percent.
This has fueled speculation in the mainstream media that a second recession may be coming.
Personally, I hadn’t noticed he first recession ever left, despite government’s assurances that it was over long ago.
But now, we may be facing a deepening of the ongoing Obamaconomy. (Oops, I meant to say “Bush economy” — after all, he visited the White House the other day, so it must be something he did.)
The Labor Department has become notorious in the past few years for massaging unemployment figures to try to manufacture the appearance of economic recovery.
Most recently, more than 500,000 people in April were removed from Labor’s figuring, thus shrinking the number of unemployed people being counted.
Much of the “recovery” shown in jobless numbers under the Obama Administration has been attributable to this same factor. Since the collapse of the economy at the end of the Bush Administration, millions of people have simply given up any hope of finding a job and have left the labor force entirely.
It’s been estimated that if the same number of people were in the labor pool as at the beginning of President Obama’s reign, the unemployment figures touted by Labor would actually be around 10.9 percent.
Those are the so-called “U3” numbers used to represent short-term unemployed.
There is another set of statistics called the “U6” numbers, which includes all the people who have been unemployed for so long they no longer are eligible for unemployment money. It also includes those who are underemployed or who have given up searching because they believe there are no jobs.
The U6 number pretty consistently hovers around double the U3 figures. For May, the U-6 rate jumped to 14.8 percent.
Despite the Obama Administration’s and media’s trumpeting of a phantom recovery, the stubborn unemployment figures, on top of two previous weak monthly reports, suggests more of the same is ahead, especially if Obama remains in office and goes forward with the massive tax increases planned for January, dubbed “Taxmageddon” by financial and online media.