2006 Job Creation Figures Were a Lie; Layoffs Being Hidden Now
May 23 (LPAC)--Challenging the strange job statistics of the Commerce Department's Bureau of Labor Statistics (BLS), an economic research firm says nearly half of the 2006 "job creation" in the U.S. economy didn't exist.
For the second and third quarters of 2006, for example, not 888,000, but only 485,000 jobs were created in that six-month period, said Stone and McCarthy Research Associates. For just the third quarter, the actual job creation was just 19,000 total, when the BLS figures claimed 498,000! The reason is that the BLS was making assumptions, of a very high rate of formation of new small businesses, which have been shown to be dramatically over-optimistic by new, hard data just issued by BLS itself. The huge drop gives an idea how large a share of those "newly created jobs" you hear about each month, are actually assumed rather than counted or surveyed.
And that is not all of this coverup. Stone and McCarthy think the overreporting has continued up to now, perhaps worsened. They observe the apparent lack of any significant drop (in BLS monthly reports) in residential housing employment, when that sector has, in fact, tanked. Housing construction has fallen more than 15% in the year up to April 2007, while BLS data on residential housing jobs have hardly changed. Well, foreign-born workers accounted for 45% of all national job growth last year, even more in states like California, Texas, and Louisiana with very active home construction in 2006. If a large chunk of those workers were undocumented immigrants, their layoffs in 2007 would not be registering at all, either in payroll jobs figures, or the unemployment rate.
With a collapsing housing bubble and plunging auto production and sales--the two biggest U.S. employment drivers--and falling retail sales, etc., many economists, not just Stone and McCarthy, have been trying to figure out where the Fed and the White House have been "manufacturing" employment statistics.