The Non Farm Payroll numbers came out of the U.S. Bureau of Labor Bullsh Statistics Friday morning to report that 163,000 new jobs were created last month, which was 63k more than equally fraudulent expected number. But when one looks closer one notices that the seasonal adjustment and the birth/death model adjustment were the highest they’d ever been for a July in at least a decade.
Convenient that.
The Birth/Death model which normally runs near 5,000 jobs for the month was 52k this month. Oh, and after that adjustment, the 8,000 extra seasonally-adjusted jobs over last year’s record July adjustment and the 31,000 new part-time jobs it’s pretty obvious that if anything the U.S. economy added fewer jobs in July than the downwardly-revised 64,000 jobs added in June.
Oh, and just to be clear, the economy needs to add 125,000 jobs per month to hold the labor force participation rate constant. So, at least the BLS is consistent. For months the BLS has been reported weak job growth and a falling unemployment rate, so it only tracks that when there is a blowout employment report the unemployment rate went up, which it did, to 8.3%.
On the back of this news the equity markets rallied, the Euro was saved, Oil rose 4% and Gold recovered to close the week at $1607 per ounce. Honestly, Orwell would be impressed by the ability of U.S. Government to sow confusion.
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