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Tuesday, May 15, 2012

The curious calculus of the US employment numbers

The math on the employment situation in the US simply does not compute. Over the last few years, many have escaped the employment market by diving into massive student loan debt. This looks good for the employment figures since these people are not counted as part of the workforce. The headline unemployment rate of 8.1 percent does not jive with 1 out of 7 Americans on food stamps. The last time we had a headline unemployment rate close to 8.1 percent was back in February of 2009 and at that time, we had 32,000,000 Americans on food stamps or over 14,000,000 less! Digging around the data you begin to realize how much phony calculations are being used especially when talking about employment. There is an interesting figure that emerges from a recent surge in disability benefits.

The calculus of the employment market

The official recession has been over since the summer of 2009 even though we have added some 14,000,000 more Americans to the food stamp program. What we do see is a surge in Americans filing disability claims shooting up by 2.2 million since mid-2010:

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