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

Inflation’s Up; So What?

Here’s a strange headline for you: “Gold prices near daily highs despite better-than-expected inflation in October.” This headline is bizarre on a couple of levels. First, since when are rising consumer prices and good news? And second, why wouldn’t inflation be good for gold? You really have to buy into the mainstream narratives to write […]


Powell Lectures Congress About Government Spending the Fed Facilitates

Fiscal 2020 started just like fiscal 2019 ended – with a massive federal budget deficit. And that has Federal Reserve Chairman Jerome Powell worried. In an ironic bit of political theater, Powell lectured Congress about the spending he helps facilitate. The budget shortfall last month was 34% higher than the October 2018 deficit, coming in […]


Student Loan Bubble Blows Up Another $32.9 Billion in Q3

American consumer debt pushed to a new record of $4.15 trillion in September. Part of that equation – the continued surge in the levels of student loan debt. Student loan balances jumped by $32.9 billion in the third quarter this year, pushing total outstanding student loan debt to a new record of $1.64 trillion. Student […]


Gold Mine Output Has Flatlined

Gold mine output has flatlined over the last several years and that trend appears to be continuing in 2019. In fact, some analysts believe we may be at or near “peak gold.” According to the World Gold Council’s Gold Demand Trends Q3 report, gold mine output fell slightly with total mine production coming in at […]


The Gold Market Is Strong With the Potential for Growth

Gold is the third-most consistently bought investment globally. This was just one of many findings in the World Gold Council’s recently released consumer research report that revealed a strong global gold market with the potential for future growth. Globally, there are clear perceptions of gold as a safe, durable, traditional store of value. As an investment, […]


Comments are closed.

Call Now