9% Unemployment Rate is a Statistical Lie

The Bureau of Labor Statistics (BLS) released the latest unemployment figures last Friday. There was a stunning drop to 9% from 9.4%. How did that happen? Is the economy really getting better or is the government up to its old statistical tricks. According to the mainstream media, the economy is getting better and the so-called recovery is alive and well. Here’s how the Associated Press reported the story, “The unemployment rate is suddenly sinking at the fastest pace in a half-century, falling to 9 percent from 9.8 percent in just two months — the most encouraging sign for the job market since the recession ended. More than half a million people found work in January. A government survey found weak hiring by big companies. But more people appear to be working for themselves or finding jobs at small businesses.” (Click here for the complete AP story.)

“More than half a million people found work in January.” How? The BLS reported there was only a tiny gain of 36,000 workers to the payrolls, and even that number is a statistical lie, according to economist John Williams of Shadowstats.com. In his latest report (last Friday), Williams said, “Incredibly, despite ongoing regular overstatement of payrolls by the BLS, the BLS appears to have upped, not lowered, the excessive biases in its latest rendition. Without the higher bias, the reported January 2011 payroll gain of 36,000 would have been a decline of 52,000.”

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