James Pethokoukis at the American Enterprise Institute released numbers that show a stark difference in what the government agency is telling us about unemployment today, and in every scenario that can be surmised...it sure isn't 8.3%.
Even if it were a legit number, the 8.3% February unemployment rate, released today by the Labor Department, would be simply terrible – and unacceptable. It would still extend the longest streak of 8%-plus unemployment since the Great Depression. The U.S. economy hasn’t been below 8% unemployment since Obama took office in January 2009. And back in May 2007, unemployment was just 4.4%.
But, unfortunately, the true measure of U.S. unemployment is much, much worse.
1. If the size of the U.S. labor force as a share of the total population was the same as it was when Barack Obama took office—65.7% then vs. 63.9% today—the U-3 unemployment rate would be 10.8%.
2. But what if you take into the account the aging of the Baby Boomers, which means the labor force participation (LFP) rate should be trending lower. Indeed, it has been doing just that since 2000. Before the Great Recession, the Congressional Budget Office predicted what the LFP would be in 2012, assuming such demographic changes. Using that number, the real unemployment rate would be 10.4%.
3. Of course, the LFP rate usually falls during recessions. Yet even if you discount for that and the aging issue, the real unemployment rate would be 9.5%.
4. Then there’s the broader, U-6 measure of unemployment which includes the discouraged plus part-timers who wish they had full time work. That unemployment rate, perhaps the truest measure of the labor market’s health, is still a sky-high 14.9%.
But even if you wish to disregard everything that Pethikoukis is saying, you can clearly see that Obama's Recovery Plan has been OFF +2% from the start!
This President is incapable of actually turning the economy around...but what he is capable of is departmentally manipulating the numbers through executive fiat. And that kind of action certainly isn't presidential.
