01.06.2012 in Economy, Featured, Jobs/Unemployment, Politics by Bill Wilson 28

Obama’s lost labor force

ObamaBy Bill Wilson — Since Barack Obama assumed office, according to the Bureau of Labor Statistics, the total population over age 16 has grown by 5.845 million to 240.5 million, and yet, since then, the civilian labor force has actually shrunk by 349,000 — from about 154.2 million to 153.8 million.

This is a startling contradiction, and it is at the heart of why the unemployment rate is much higher than the 8.5 percent being reported.

The problem is that the measured civilian labor force participation rate has fallen from 65.7 percent to 64 percent since Jan. 2009, reflecting people who have lost hope and simply stopped looking for work.  If those people were still counted, the actual civilian labor force would be 4.176 million higher than is reported at about 158 million.

Based on this analysis, the number of unemployed is actually closer to 17 million instead of the 13 million reported jobless.  That is simply astounding.

Instead of 8.5 percent, the effective unemployment rate should be closer to 10.9 percent, and the underemployed closer to 17.4 percent, or 27.3 million.  This is what we mean when we say that the unemployment rate is no longer a valid economic indicator.

Propaganda is not going to get the real unemployed into jobs.  It’s not going to help families keep their homes.  It’s not going to help college graduates to enter the work force.  We’re nowhere near where we should be, and it’s Obama’s fault.

It’s his regulatory burdens that are being imposed through the Environmental Protection Agency’s (EPA) carbon endangerment finding and through Obamacare.  It is he who is insisting on raising taxes on job creators, and playing class warfare to cobble together a constituency that wants to apparently take from their employers’ purses.  It is Obama who has refused to get the nation’s crushing debt load under control, where the $15.2 trillion national debt is nearly larger than the entire economy.

To get the economy moving again, the government needs to slash corporate tax rates, which are the highest in the world of advanced economies.  It is imperative that the regulatory overkill come to an end.  The dollar needs to be strengthened to lower costs and stabilize energy and food costs.  The debt needs to be paid down and retired, and the budget balanced. Onerous federal securities laws and state-by-state blue sky laws need to be repealed that make it cost-ineffective for new businesses to raise capital.

In short, it must become competitive to do business here in America again.  And that will probably not happen so long as Obama is in office.  It is clear the nation needs new leadership that is intent on actually creating jobs and restoring hope, instead of ignoring the despair of Obama’s lost labor force.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

This article has 28 comments
  • Dean 06.01.2012 10:28 PM

    Today the government reported unemployment dropped to 8.5% down from 9.0%.  ANOTHER LIE.

  • Roy Durham 07.01.2012 11:04 AM

    You know it’s becoming more popular to reference private sources for these types of statistics. Fewer and fewer people are trusting exactly what the government is reporting. Even main stream media is having problems selling the news the white house is pouring out. The following site reports that last December unemployment was actually around 23%. They use the old method of counting the unemployment rate that was used in 1994. It was seasonally adjusted and offered a more accurate picture of what the economy looked like. http://www.shadowstats.com/

    Just something to consider is all.

  • Larry Walker Jr 07.01.2012 4:15 PM

    ” the civilian labor force has actually shrunk by 349,000 “. I came up with a loss of -739,000 from February 2009 through December 2011 @ Labor Force Contraction with Obama. But the point is the same.

  • Steve R 09.01.2012 12:35 PM

    And what about those millions that don’t bother to look for work because they vote for a living and Obama takes care of them?

    10.9%??? I think a great deal higher!

  • mike88 09.01.2012 12:57 PM

    Agreed Bill, that is just another reason why we need a Ron Paul Presidency. Ron Paul would not only slash unnecessary rules and regulations that stifle businesses and other job creators, but he will also slash many of the unnecessary Federal Departments that over the past 30-40 years have not done their stated goals or missions, and have been a burdon on the taxpayers of the united states. Many of the Federal Employees being paid enormous salaries and benefit packages that in most cases are larger than many of the workers in the private sector. This is totally unsustainable to have a Federal workforce that is paid higher wages than the private sector taxpayers who pay the Federal Employees salaries.
     Every Federal Department or Agency should need to justify their very existance not just their job but also their Constitutional standing. If the Constitution does not permit for an agency to exist then it should not exist. We the people of the united states got by very well without many of the established Agencies or Departments that we currently have, and we could get by much better without many of them again, and it would save the taxpayers billions of dolllars/year not to have to fund many of the agencies and or departments in the Federal Government, and many of their counterparts in State governments as well. No other candidate except Rick Perry has even offered to slash Federal Departments that are not needed and he only did it after jumping on the Ron Paul bandwagon after hearing about how this idea appeals to the people of this nation.

  • Jritchiejr 09.01.2012 1:59 PM

    I think Roy D is right on the mark.  I got laid off over 2 years ago and have put in over two-thousand applications.  There are so many out of work people, and new college grads being pumped out, then over a million new legal immigrants being brought in, then add millions of illegals from Mexico, and last but not least the outsourcing/movement of industry overseas…we are not in recession, it is either Depression or collapse.  Whether depression or collapse it will depend on restoring consitutionally conservative government..not holding my breath on this.  In this economy older experienced workers are not even being considered by employers.  Employers are worried to, so they are concerned with being tight and watching the bottom line…..lowest cost/expense possible.

  • Shortstu 09.01.2012 2:16 PM

    Their unemployment count is about as correct as their inflation count.

  • Paul 09.01.2012 2:56 PM

    The actual numbers of unemployed and underemployed are in the neighborhood of 40%+. Misinterpretation of this impact on the US labor force does all of us a disservice.

  • John Detwiler 09.01.2012 3:02 PM

    mike88, I’m sorry to say this but you Ron Paul supportes must be smoking something. He couldn’t get elected if he were the only man running. His extreme position on some of the important policy changes is downright ridiculous. He wants us to become a statelite Nation in the world, very unrealistic. His stand on bringing all of our troops home has some good points, but again inrealistic. His statement that Iran should be able to have Buks is so pathetic that I question his sanity, Iran has called us a devil nation and threatened to distroy Isrial. And is even comntemplating a Missle depot in Aergentina If this nation hadn’t been a Nation that helped other we would be in a hell of a mess. Ron Paul has been in Congress many years and has submitted numerous bills and only one met the aproval of his legislative body to wil approval. Come on you guys get real and back someone in the Tea Party if you want to see positive change.

  • Anonymous 09.01.2012 3:03 PM

    What did anyone expect from a community organizer?  Obama’s lack of qualification was astonishing
    and yet because of the liberal media mostly owned by George Soros, people believed
    that Obama was the anointed one.  Well I
    guess everyone has finished drinking the cool aid and are now ready to find a
    leader that loves our country and not themselves.

  • Ron 09.01.2012 4:22 PM

    perhaps barack can supply one way tickets to china for the unimployed

  • Kenny 09.01.2012 4:26 PM

    Doc,

    Here is a good analogy of the “experience” level we are dealing with. This is a good one I just read that my aunt sent me. Not real funny, but OH so TRUE:

    I am really concerned about North Korea’s appointment of the “dear leader”, KimJung Ill’s youngest son to be the new leader of North Korea– a nuclear power!
    After all, Kim Jung Un (pronounced Kim’s young-un?) had NO military experience whatsoever before daddy made him a four-star general in the military. This is a snot-nose twerp who has never accomplished anything in his life that that would even come close to military leadership: he hasn’t even so much as led a cub scout troop, let alone coached a sports team or commanded a military platoon. So,setting that aside, next they make him the “beloved leader” of thecountry. Terrific!!!

    Oh, crap! I’m sorry. I just remembered that we did the same thing here, We took a community organizer who has never worn a uniform and made him Commander-in-Chief; a guy who has never led anything more than an ACORN demonstration and made him the leader of this country. Never mind.

  • Fred 09.01.2012 4:42 PM

    BO and his democrat goons have robbed the working class.  If you look at the headlines on todays you will see that those thieves have put us into 15 trillion debt which is equal to the economic output of the entire country for a year.  That is slavery of the entire population of the country, including our children, for a generation! is it any wonder he has lost the WORKING CLASS?  Perhaps the workers are tired of being robbed by their incompetent criminal corrupt government.  If you dont understand this the way I do, then why not?  Tell me! The democrats have over promised on every major social issue of my generation: social security (we wont get back what was stolen from us by force), the great welfare society of LBJ (destroyed the family, specially the black family, by stealing from the working class), and now obama care ( to destroy our health care system).

    Folks, the government must become 50% smaller.  And get back to the constitution!  I am a fairtax advocate and believe that we have to get the federal government out of our pockets!  Why do we have to report our finances to the government?  Look at their track record – a bunch of incompetent arrogant thieves.  Fairtax eliminates the income tax and replaces it with a sales tax.  You pay the correct amount, on time, no penalties, no reporting, no HR Block, no turbotax, no paperwork, no worries.  It is easy, easy, easy!!!  Please help cut the legs out of this corruption. Google fairtax.  help stop the out of control thievery that is our federal government!

  • Viet Vet 09.01.2012 4:45 PM

    Plus, obama marched with the new black panthers with the clenched fist sign. And now the POS is in a position where those elected to representy US, the American citizens, refuse to do anything except act like a bunch of first graders arguing over a candy bar.

  • Anonymous 09.01.2012 6:28 PM

    Personally ,I think 10.5% is a vastly understated number of the true unemployed , many are young people , college grads and others that never went to college that have yet to hold a job . I present the occupy movement as an example , unfortunately they are responsible in large part for the election of this incompetent half-wit prepared from youth to make America a banana republic .

  • rachie12 09.01.2012 10:55 PM

    THIS IS WHAT HAPPENS WHEN YOU VOTE DEMOCRAT! EVERY SINGLE TIME YOU CAN TAKE IT TO THE WELFARE OFFICE NOT THE BANK CAUSE THERES NO MONEY. WE ARE SO SCARED OUT HERE I HAVE EIGHT KIDS AND HALF OF MY KIDS THREE MONTHS AFTER OBAMA WAS SWORN IN LOST THEIR JOBS, HOMES CARS AND FINALLY MARRIAGES AND THANK GOD WE SAVED TWO FROM KILLING THEMSELVES. THESE KIDS WERE IN THE BUSH YEARS MAKING 100 THOUSAND A YEAR EACH OF THEM. ONE WAS A FINAICIAL ADVISOR FOR LOANS THE NEXT OWN TWO GOOD PRODCING BUSINSS WITH EMPLOYEES IN TWO STATES. THE OTHER TAUGHT MEDICAL BILLING AND CODING TO DOCTORS AND THEIR STAFF AND ALSO TAUGHT AT LOCAL UNIVERSITY SO STUDENTS COULD LEARN SAME. THE LAST ONE WORKED IN GENERAL SURGERY AT LOCAL HOSPITAL. ALL UNMPLOYE FOR THE LAST THREE YEARS CANNOT FIND  A JOB. DOING ODDS AND ENDS TO SURVIVE AND N OW ALL LIVE TOGTHER WITH EVERYTHING GONE.THANK OBAMA FOR YOUR HOPE AN CHANGE, OBAMA YOU ARE WORTHLESS ALL YOU AND MICHELL HAVE DONE IS PARTY AND GO ON VACATION SPEND OUR TAX PAYOR MONEY ON EXPENSIVE VACATIONS AND FLYING THE DOG ON OUR DIME ALL BY ITSELF. WHAT GOV REASON FOR FLYING A DOG??? OMG WHO KNOWS WHAT ELSE  MSM DOENST REPORT OR TELL THE TRUTH OR PLAYS COVERUP . HISTORY WILL UNCOVER THE WICKNESS. AMERICANS IF YOU LOVE OUR COUNTRY DO NOT VOTE FOR OBAMA NO MATTER WHAT THE CAMPAIGN CCOMES OUT WITH SOME FANCY JINGLE OR THE RUTHLESS LIES. JUST RECALL HOWBAD TIMES ARE AND OBAMA CANT KEEP BLAMING BUSH FORVER HE CAN’T KEEP ASHING THAT CHECK OVER AN OVER ANDD BY THE WAY THE DDEMORATS HAD CONGRESS FOR THREE YEARS PRIOR TO OBAMA TAKING OFFI AS PRESIENT AND HE IN FAT WAS PART OF THE SENATE OF WHICH HE DID NOT VOTE. SHAMEFUL MAN.

  • rachie122 09.01.2012 11:00 PM

    if you go to the unemployment there are three rating systems the obama adminstrations is hating and using the one that indicates a low number but the truth is  way higher due to the reality of people falling off the unemployment rolls an people giving up looking for work. so one again obama is misleading the American citizans how much more lies are you going to take from this lying sak of shit.

  • Anonymous 10.01.2012 10:19 AM

    LOVED IT. THANKS I WILL PASS IT ON.
    Subject: [netrightdaily] Re: Obama’s lost labor force

  • Robert 12.01.2012 1:51 PM

    I think it was Harry Truman who said there were three kinds of lies: lies, damned lies, and statistics.

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