Friday, March 23, 2012

California Unemployment

The California Employment Development Department today reported that 4,000 non-farm jobs were created in the state in the month of February 2012.

California now has an unemployment rate of 10.9%, unchanged from January.

The same office tells us there are TWO MILLION unemployed people in the state of California.

Only 4,000 jobs created in an entire month in the largest state in the United States.

2,000,000 people officially unemployed.  How many hundreds of thousands more underemployed and so discouraged they are no longer part of the California labor market?

I keep hearing about the amazing economic recovery underway.  How a new prosperity is sweeping the land as all the financial sins of the past melt away in the sunshine of the new always blue skies ahead.

There's only one problem.

The unemployment numbers being reported by the states like California do not match the GDP growth statistics and national economic measures coming from the Feds in DC.

I wish Congress would investigate these numerous and troubling discrepancies, starting with how the Bureau of Labor Statistics calculates the unemployment rate.  How fewer desperately seeking job seekers can be working but the unemployment rate goes down is just too complex for me.  I'm a common sense person.  Unemployment goes up when fewer people who want jobs have them and vice versa.  Even an educated guy like Larry Summers can't explain the BLS Labor Force Participation Rate with clarity.  Watch this interview.

This is what I find most troubling of all.

All the wild government spending in Sacramento that is bankrupting the state and all the private businesses in California with borrowing costs near zero could only produce 133 jobs a day.

4,000 jobs down.

1,999,996,000 to go.

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