Contact us
CALL US NOW 1-888-GOLD-160

What Do These Jobs Numbers Really Tell Us Anyway?

  by    0   0

November’s jobs numbers came out Friday weaker than expected.

Trump’s twitter feed was strangely silent on the jobs report. Generally, he likes to tout unemployment as an accomplishment, even though he poo-pooed the same numbers when he was campaigning against Obama.

As Peter Schiff pointed out in his most recent podcast, the official numbers significantly understate unemployment.

Economists expected the US economy to create about 190,000 jobs last month. The number came in at 155,000. The Labor Department also revised the October number down from 250,000 to 237,000. Unemployment held steady at 3.7%. Average hourly earnings came in slightly weaker than expected at 0.2%. The labor force participation rate held steady at 62.9%.

The market initially rallied on the wage news, assuming that slower wage growth would indicate less inflation and take some the pressure to slow rate hikes off the Fed. But as Peter noted, the rally was short-lived. The stock markets quickly rolled over and got clobbered “because this is a bear market and this is a negative sign.”

Peter said he thinks an even bigger negative sign was the increase in the U6 unemployment number, which climbed from 7.4 to 7.6%. This is a pretty significant jump in a single month.

The U6 number includes people who are working part-time but want to work full-time, along with discouraged workers who have been unemployed less than a year. As Peter noted, this should be the actual unemployment number, “but in order to pretend that it’s lower, we use a different rate.”

If you’re looking for a full-time job and you don’t have one and you want one – you’ve got some crappy part-time job – you’re unemployed.”

Peter made an interesting point that is lost on most people who talk incessantly about today’s “historically low” unemployment.

When Donald Trump now wants to say we have the lowest unemployment rate since 1968 — no we don’t because we’re comparing apples to oranges. Back then, they used an unemployment rate that counted all the discouraged workers, all the people who were working part-time who are looking for full-time jobs. Except Donald Trump knows this. How do we know he knows this? Because when he was a candidate for president, he pointed it out. He said that the official unemployment rate was a lie, it was a scam, it was a joke, it was fraud, it was a con, except now it’s his con, his joke, his fraud, his lie, because he is repeating the same lie that the Obama administration was touting which helped him get elected because he was telling the truth. People knew that the real economy was in much worse shape than these phony numbers. So, now he’s hiding behind these same phony numbers.”

When you boil it all down, the unemployment headlines in the mainstream media don’t really tell us all that much about what’s going on in the jobs market. You have to dig much deeper into the number. The mainstream keeps using unemployment to tell us everything is great. But if you look at the internals, it’s not all the great. And it really hasn’t been great for years.

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Feds Run Second-Biggest Budget Deficit in History; Spending Up from 2020 Record

The federal budget deficit for fiscal 2021 came in at $2.77 trillion. It was the second-largest deficit in US history, just behind last year’s $3.13 trillion shortfall. Despite falling shy of the deficit record, Uncle Sam spent even more money in 2021 than it did during the depths of the 2020 coronavirus recession.


Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]


Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.


JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.


American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]


Comments are closed.

Call Now