26 June 2014

Numbers Don't Lie, Do They?

28 Sivan 5774

Language can be manipulated, but numbers don't lie. Or do they?

The reported "unemployment" rate in the US is 6.3 %.

But, the "labor force participation" rate is 62.8 %. Using that statistic, that means that 37.2 % of the population is unemployed.

According to this report, less people working results in a lower unemployment rate...

"The tepid labor force participation rate, which has hovered for months at its lowest level in four decades, is a primary reason the unemployment rate has fallen rapidly in the years since the recession ended in 2009."

Can anyone else make sense of this? I sure can't! However, this I get...

"...the headline unemployment rate has proven misleading as an indicator for the health of the broader economy,...."