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Friday, December 02, 2011

The Fraudulent Unemployment Rate

If you wonder how the unemployment rate dropped dramatically to 8.6% despite only adding 125,000 jobs last month, you're not alone.

The truth is that the Obama Administration has been reducing the labor pool numbers for two years now in what is an obvious effort to give the appearance of a jobs recovery. Most media outlets will not report it, Americans won't pick up on it and Obama will pretend that his prescriptions are working well. However, the reduction in the labor force is completely arbitrary based on what the Administration supposedly believes is a reduction for whatever reason. If they had not done this, the true unemployment rate would be a not-so-rosy 11.5% (with underemployment still much higher in the 16-17% range).

Once again, Obama is trying to fool the electorate in advance of next year's election. Will it work?