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Find A Job? Good Luck In This Economy – 10 Reasons Why The Latest Unemployment Numbers Are No Reason To Cheer

The U.S. government is telling us that the unemployment rate fell all the way down to 9.0% in January.  Should we all cheer?  Is it now going to be a lot easier to find a job?  Has the economy finally turned around?  Are happy days here again?  Well, it is a good thing to have a positive attitude, but the truth is that there is just not much to cheer about when you take a closer look at the recent unemployment numbers.  First of all, the U.S. economy only added 36,000 jobs in January.  Economists had been expecting an increase of about 145,000 jobs, and an increase of 150,000 jobs per month is necessary just to keep up with population growth.  So why did the unemployment rate go down?  Well, the government says that over half a million Americans suddenly dropped out of the labor force in January.  That doesn't make a lot of sense, but this is how the government calculates their numbers.  So what happened to those 500,000 Americans?  Did they all win the lottery?  Have they all become independently wealthy?  Did they all die?  No, the vast majority of them are still around and the vast majority of them still desperately need jobs.  It is just that the government does not count them as "looking for work" anymore.

It would be great if the employment situation in America actually was getting better.  All the time people send me absolutely heartbreaking stories about what they have had to endure in this economy.  Soon I hope to share some of those stories with you all.  It is hard to try to describe the absolute horror that many Americans are going through right now.

People would like to believe that things are going to get better, but unfortunately that is just not going to be the case.  The government can try to massage the numbers to make them look better, but the truth is that the tens of millions of American families that are deeply suffering right now are not fooled.

The following are 10 statistics that reveal that the latest unemployment numbers from the government are no reason to cheer....

#1 According to CNBC, economists were expecting the U.S. economy to add 145,000 jobs during January. Obviously the 36,000 figure was a huge disappointment.

#2 Approximately 150,000 jobs need to be added to the economy each month just to keep up with population growth.

#3 The government jobs report also indicated that 504,000 Americans "dropped out of the labor force" in January.  That may make the unemployment numbers look better, but the truth is that the vast majority of those 500,000 Americans still need incomes and still need jobs.

#4 According to the latest numbers from Gallup, the unemployment rate actually increased to 9.8% at the end of January.

#5 Gallup's measure of "underemployment" (those that are unemployed plus those that are working part-time but want full-time employment) was sitting at 18.9% at the end of January.

#6 As I reported yesterday, there are approximately 28 million Americans that would like full-time jobs but that don't have full-time jobs.

#7 According to Zero Hedge, the number of Americans that are "not in the labor force" but that would like a job right now has hit an all-time record high.  If you add all of those people into the official unemployment figure it would jump to 12.8%.

#8 According to Calculated Risk, this is the deepest and most brutal employment downturn that the United States has experienced since World War II.  The current employment downturn started 37 months ago and there doesn't seem to be any indication that we will return to pre-recession levels any time soon.

#9 The U.S. Labor Department has also announced that job growth during 2010 was much weaker than they had previously reported. The numbers for 8 months were revised down, and the numbers for 4 months were revised up. After all of the revisions are accounted for, it turns out that a total of 215,000 fewer jobs were created during 2010 than originally calculated.

#10 According to one brand new survey, 4 out of every 10 Americans are struggling "a lot" to pay the bills right now.

The situation is not pretty out there.  The U.S. needs tens of millions more jobs than we have right now.

So where are all of our jobs going?  The video posted below contains some very strong hints.  The truth is that globalism is ripping our economic infrastructure apart, and all of the crazy rules and regulations we keep heaping on business are not helping either....

U.S. workers have been merged into a "global labor pool" where we are expected to directly compete for jobs with people making slave labor wages on the other side of the globe.

The more time you spend thinking about that, the more you start realizing that the standard of living of average American families is going to continue to decline.

Unfortunately, as I wrote about in a recent article entitled "Nothing Is Stable Anymore", the world is changing faster today than at any other time during our lifetimes.  Everything that we used to assume about employment, money, our economy and our finances is being turned upside down.  We now live in a world where very little can be taken for granted.

2011 has already been a very tumultuous year.  The world is being transformed.  Nobody knows for sure what is going to happen next.

One thing to really keep an eye on is the price of oil.  Right now, large numbers of investors are betting that the price of oil will rise to $125 a barrel by May.  Shockingly, some investors are even betting that the price of oil will rise to $250 a barrel by next December.

If oil starts to spike dramatically, it will have tremendous implications for the U.S. economy.  Our entire economic system runs on oil.  The price of oil affects the price of everything else.

If the price of oil keeps going up it is inevitably going to cause a slowdown in the U.S. economy and it will cause the unemployment situation to get even worse.

So be glad that the employment situation is at least somewhat stable for now, because if things take a bad turn for the worse in 2011 who knows what kind of unemployment numbers we'll be talking about a year from now.

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  • Colin

    I don’t believe that if we reduce the number of regulations and rules that corporations will begin the process of hiring Americans. At this point, the corporations are committed to a business model that works for them and the chance of them changing is as good as Mubarak stepping down right now.

    Years ago, I watched a film from the late 60′s about a youth revolution in which people over age 40 were placed into camps where they were fed, housed, and clothed by the government. I think this is far more kinder than what is happening now to men and women who are over 40. I am watching my mother suffering as she is learning that she is no longer needed in this society, and as she attempts to adjust to a life of dire poverty. If she was placed in a camp, there would be certainty. She would know where she would get the essentials.

    I think the situation will get progressively worse. The owners are getting wealthier – there may even be trillionares now – and their proxies – the people in government – are debating the definition of rape and patting themselves on the back for a faux unemployment report.

  • sharonsj

    You forgot to add that most of the new jobs are low paying. Try to pay a mortgage on minimum wage….

  • mondobeyondo

    Let’s do a little quickie math here.

    I apologize if the numbers are a bit off – I have a headache. This stuff is making my brain hurt.

    308,000,000 – Approximate U.S. population.

    9.4% unemployment means about 27 million Americans are unemployed at the moment.*

    65,000 jobs (give or take) were created in January.*

    The unemployment rate is now 9.0%. 9 percent divided by 308 million.. oh, forget it. Let’s just say it’s about 25 million unemployed right now.*

    That’s still too many people.

    And even if you did find employment last month, what is the quality of your new job? Does it pay for rent? Food? How about medical insurance? Oh by the way, I’d like some stamps today, thank you! No ice though, but thank you for asking. It’s cold enough outside.

    * = if you believe the official government statistics. Ha. Haa. Haaaaa!!

  • Davidm

    There is Obama’s solution to solve unemployment. Just wait for everyone to give up on looking for work and/ or die. Hell of a job Obama. If you can just get another 6 million more people to give up looking for work, you can get the unemployment rate back to normal. I love Obamanomics!

  • Davidm

    420,000 jobs a week are lost. How many of those were among the last decent high paying jobs? Those jobs created are burger flippers, walmart greeters and part time car wash staff. How would you like to be thrown out into this job market? What are the odds you will find a job as good or high paying as the job you lost.

    Still I bet Obama is pleased, proud and certain the economy is headed in the right direction

  • Louise in MO

    You don’t have to be a whiz at math to know the ubenployment figure cannot be at 9.0 with only 65,000 jobs created in January. We are not all idiots!

    I have NO trust nor faith in Obama and company. He is way out of his league(or as he prefers, it is above his pay grade). He has no experience to guide this country into financial stability. He has surrounded himself with people who have little or no experience.

    If we somehow manage to not all be homeless and/or without heat, electricity or food, God help the fools that would re-elect Obama.

  • impeachRonPaul

    #11 Republicans insist on employer based healthcare. They are causing jobs to leave over health care costs. Without universal healthcare, we will lose more companies.

  • http://moneycrisisgameplan.com Money Crisis Game Plan

    If ’4 out of every 10 Americans are struggling “a lot” to pay the bills right now’, and the predictions for soaring oil/gas prices comes true, then that number will also soar.

    People need financial education now more than ever, to increase their cashflow and protect their money.

    David – The Elevation Group

  • http://nichekeywordsfinder.com David

    That Ford factory is amazing. Amazing in that it should be in Detroit.

    Our system is now so anti-business, that it’s no wonder factories and jobs moved to other countries.

  • dollar store nation

    take away from this jobs report is that companies have no hiring plans at all (zero). if you’re unemployed and over forty u better be prepared to create your own job or be prepared to take some seriously early retirement

  • http://isncoinsreviews.com ISN

    It’s amazing how 500 million people just drop off the list to make the unemployment numbers look better.

    And Bernanke recently said that “overall inflation remains quite low.”

    On the other hand, Inflation.US says just posted a video that predicted $500 silver by 2015, due to currency depreciation.

    Tough call on who I should believe.

    To watch the video, click on $500 Silver Bullion

  • Colin

    To put into another perspective, 108.6 Americans are unemployed, underemployed, or out of the labor market. If one adds people who are employed in part-time jobs with no economic incentive, the number increases to 126.8 Americans. This is 41% of the population. (“No Jobs, No Hope, No Future: 27 Signs That America’s Poverty Class Is Rapidly Becoming Larger Than America’s Middle Class”, located here on this blog)

    My fear is that the government will act on this baloney number, and do little to alleviate the situation.

  • D Rumsfeld

    In addition look at the participation level which is at a 26 year low. Then look at U6 which has rocketed to over 17%.

  • Johnson

    But don’t worry. Tone deft companies will continue to offshore jobs. Like children gobbling down candy until they get an awful bellyache, companies will not quit at what is destroying this country until the economy is too sick to maybe recover!
    =========
    Morning Coffee
    Feb 04 2011
    Companies Plan Increased Offshoring

    The cost savings of sending IT work overseas aren’t what they used to be, but they’re still good enough for the majority of U.S. companies.

    More than half the firms surveyed by the Conference Board plan to expand their near-term offshoring plans, according to the sixth annual report produced by the business research group with a Duke University offshoring researcher.

    ….

    http://it-jobs.fins.com/Articles/SB129683052338783155/Companies-Plan-Increased-Offshoring

  • http://n/a jgouig

    Good luck, worship “W”! This is where it got you…

  • john

    One reason the depression of the 30′s lasted so long was because people gave up hope. Albert Einstein said that insanity was doing the same thing over and over again expecting different results. We all must change the way we think. God grant me the serenity to accept things I can not change, courage to change the things I can, and the wisedom to know the difference.

  • Curtis Walker

    The mentioned movie: Wild in the Streets and featured song was: FOURTEEN OR FIGHT. Lowering Of Age To Vote: 14.

    That would solve our problems???

    ;)

  • Mark

    Camps would be good Colin? Are you on drugs?

  • http://stockresearchportal.com Ian R. Campbell

    I think that much of the content of this article is ‘spot on’. Good work. For commentary in support of many of the points made here and related U.S. unemployment issues (including comments on U.S. Structural Unemployment) readers might be interested in visiting comments I have made over the past few months in e-mails I send to at http://goo.gl/Qq9DB (October 21), http://goo.gl/8uI1S (November 11), http://goo.gl/oYlPr (December 6), http://goo.gl/KxxCz (December 20), and http://goo.gl/mZGZp.

  • http://www.dailyjobcuts.com Karen

    I’m just a regular person that likes to fact checkjust about everything I hear on cable(not FOX SUPER LIARS) and I was laughing when the 9% # came out yesterday.
    In November the 99ners were 4.4 Million so 2 months later add 1/2 million to the 99ners.
    In Dec. part-time jobs were added and those people were off unemployment and now most are unemployed.
    College Students can’t collect unemployment as they have never had a job and there are a lot of students looking for jobs.

    I think the true % of unemployed is closer to 30% and growing.

    So for the GOV. to brag about 9% is a hit to my intelligence. So sad the Obama has to now lie about jobs.

  • El Pollo de Oro

    Is the government’s new unemployment figure of 9.0% bogus? You bet it is. Government unemployment figures never tell you the whole story because: (1) they don’t take into account the millions of Americans who have been unemployed for so long that they have simply fallen off the government’s radar, (2) they don’t take into account underemployment, and (3) they don’t take into account the economic condition of the self-employed. I’m a small business owner who is still working and typically puts in a 50-hour week, but I’m not making nearly as much as I was four years ago—let alone during the Bill Clinton years.

    The real unemployment rate in The Banana Republic of America (formerly the USA) is over 20%, and that isn’t counting all the people who are still working but are struggling badly. The reality is that the former USA has become a Third World banana republic where the neo-feudalist robber barons are getting richer and richer while the peasant majority is growing poorer and poorer. And all the morons who keep whining about “socialism” need to get their facts straight. What is transpiring in the BRA is not “socialism” any more than it is “capitalism,” “free enterprise,” “fiscal conservatism” or “rugged individualism”; this is FASCISM, which none other than Benito “Il Duce” Mussolini defined as the merger of state and corporate power. To quote el libertariano Gerald Celente, “The merger of state and corporate power is called fascism, and fascism has come to America.” Indeed it has. True capitalists believe in competition; the neo-feudalist robber barons who run this Third World house of horrors believe in monopolies and oligarchies, not competition.

    Welcome to Third World misery and Third World suffering. Welcome to The Banana Republic of America, maldita pesadilla del tercer mundo.

  • Gary2

    sharonsj-you are 100% correct. We need to look at the quality of the jobs being created. If all the jobs are low wage crap walmart type jobs as opposed to good wage family supporting jobs then all the new jobs are pretty much worthless.

    We just found out yesterday that our hours are being cut yet again from 38 to 36 per week. Yet the big wigs all get nice increases in pay. WTF??? How can anyone not see the wisdom in taxing the rich CEO’S and spreading the wealth? Most of the issues with unemployment would not be so severe if the wealth was spread more evenly. Europe(who accurately measures unemployment unlike the US who we all know their UE # is bs) seems to get along fine with their higher rate as their wealth is spread more evenly. This is especially true in Scandinavian Europe. Tax the greedy to help the needy.

  • Jeremiah

    Colin:

    Forgive my nosiness – however…..

    I hope that you are doing more for your mother than passively observing and reporting her slide into poverty. Although you are well-intentioned, the idea of placing people into camps brings to mind Japanese internment camps and WWII concentration camps. I hope you reconsider your position on that.

  • John S

    I can deal with low wages. I even can deal with minimum wage. What I can’t live with is the refusal of employers to give you 40 hours a week. The restaurant chain I work for recently announced that no longer would employees be considered full time. Take your 24 hours a week or leave. They made this announcement the same week Obamacare was signed, but I’m sure that’s a coincidence.

    It’s stinks to work like a dog to make $225 a week, especially when I used to make $311 sitting around on unemployment. But Obama says I’m employed.

  • David

    What happened to those people who were not counted? I have the answer for you; most of the packed their bags and left the country to seek for better lives elsewhere. Once upon a time America used to be for those who came for the better lives.

  • Nickelthrower

    Greetings,

    What we actually need is an “Egyptian” moment in the form of a national strike. If we do not show the ruling elite what things look like when we refuse to work then they will continue forcing us into poverty.

    Just my thoughts.

  • Kevin

    This mess started decades ago when the debt engine replaced the industrial engine. Both parties are hip deep in in.

  • http://www.planorperish.com/ Gutter Economist

    Obama’s State of the Union

    “Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.”

    Obama’s Economic Recovery

    http://www.planorperish.com/?p=4177

  • jeff

    mondobeyondo:

    unemployment is not taken as a fraction of the total population of a country, just its workforce. Hence, retirees, children, stay-at-home moms, etc are not included.

  • mondobeyondo

    Sorry about that last figure I gave you about jobs created in January. Turns out the actual total is 36,000, according to CNN, which would make our current situation even worse. I had a headache when I posted that.. think I’m going to have a migraine now!

    @ Jeff

    Well yeah, unemployment is (supposedly) just a fraction of the total populace as a whole. But I’m assuming that they are including WORKING age people. Let’s hope so anyway – government people are smart. (chuckle!) 8 year old girls aren’t employed – okay, they sell Girl Scout cookies, but that’s not a job! – and 83 year old men are generally not employed.

    But even if you include the 18-62 year old demographic, it’s still too many unemployed people, for our recovering, soon to be vibrant economy.

  • mondobeyondo

    @ John S

    Yes sir, you are counted among the employed! Even though you earned more on unemployment than you do at your current job. Hey, you have a job! And that is what matters. Not as much pay as your old job, but let’s just keep that part under wraps, OK?

    Congratulations! You’re part of the statistic that says “Lower unemployment — the job market is getting better!” President Obama says, “Jobs are coming back!” Oh really?

  • Colin

    Jeremiah,

    I am slipping with my mother into dire poverty. I am mentally ill, and there are times when the most I can do is watch her decline. I am frustrated at the inactivity of our government, and the politicians’ willingness to cut health and social services. I would never support sending myself or my mother to an internment camp or a concentration camp. However, I feel that our government must bear a greater responsibility for its citizens and abandoning so many of us to the turmoils of a economic storm is criminal negligence. A camp may be a terrible option, but so is homelessness.

  • el jefe

    @mondobeyondo: 27 million americans are not unemployed. the unemployment rate does not reflect the total us population: there are homemakers, college students, retirees, and disabled adults (mental and physical). these individuals are not included in the calculations since they are not active job seekers. just because there are 308 million americans does not mean that everybody is working/looking for work. the unemployment rate is more “guesstimation” than solid fact.

  • http://www.pathtoasia.com rhea

    I understand that our country is completely out of control. One would have to wonder if the truth even exists for people, much less corporations. As long as the people allow the corps to survive, they will be lied to, cheated, and have every last penny stolen from them without any explanation having to be given. The U.S.’s unemployment stats are more manipulated, kneaded & massaged than the thighs on a world-class ballerina.

    We help Americans find jobs and prosperity in Asia. For details, visit http://www.pathtoasia.com/job/

  • vigiliantVeteran

    Well all i can say is too many americans have sold them selfs out and the rest of the nation on this matter look at all the other countries who rioted when what they had was threatened or changed but not america no way we love of ipods and 54in tvs as long as we got that who cares right i still have a job who cares its socialism at its best and one more for ya if u think america is a democracy ur dead wrong its supposed to be a republic where the ppl decide whats right not the elected officials the ppl tell them what to do but as long as u only vote twice a year u did ur part Wrong WRONG WRONG thats why we r where we r too many worthless eaters and thats what the gov wants and they got it fre rain to destroy this country oo no one wants to ruin america lol well just look around its happening now..

  • Gabrial Singh

    this employment issue was set in motion by your boy Bushed and his republican congress, when Nafta was pushed through during the clinton repulican congress. All I can say now, to you right wing trash, is you broke it, now you own it. All the blaming of obama doesnt hide the fact, YOU nazis did it to yourself. whatsa matter, dont like your handiwork, nimrods? right wingers are a pathetic excuse for Americans. you right wingers are losers and you are harvesting what you have sown. losers.

  • Jeremiah

    Colin;

    Thank you for enlightening me. I understand better how you and your mother are struggling.

    Camps are a terrible option because they always lead to tyranny/oppression/abuse, etc. They are presented in the beginning as something beneficial and the populace swallow the lies whole. Then they morph into something unspeakable, which usually includes murder or destroyed lives. I have seen the concentration camp at Dachau. It was unspeakable. People need to do the “right thing” when they are in a position of power, but unfortunately, absolute power leads to corruption absolutely. The folks in charge are power-hungry sadists who care nothing about us. They just intend to shove their NWO agenda down our throats – probably with a garden hose, no matter how we feel about it. You and others I know are proof that we are well on our way toward 3rd world status.

  • jude moriarty

    Egypt/Tunisa notice nothing is reported about the IMF austerity programs – that have people living like animals. Meantime WE (USA) supported Mubarak with his MARTIAL Law – goons squads – Gitmo torture camps where USA sends ‘suspects’ who disappear. Mubarak is now worth 70 bill/ has homes in Madrid – Red Sea – France – Beverly Hills – London – Dubai – Germany!! Recall how FAST Aristede (democratically elected) was gotten rid off. NO slow transition period for him. The blabbing on TV about Egypt is a joke –98% of reporting on media is mere talking points given by corporate owners. Americans are dumbed down to mud – nobody seeks the TRUTH . By the way ten bucks an hr is NOT a job – it’s babysitting money – chump change. SEE
    http://www.globalrights.info/world/africa/1104-the-protest-movement–in-egypt-dictatorsq-do-no-dictate-they-obey-orders.html

  • Save the Republic

    The only option for average Americans to impact our society is to “starve the beast”. Do not buy anything that isn’t made in America if you have an option. If you don’t have an option, maybe you can buy something used, so as not to contribute to the flow of money to these super-rich, slave using corporate vampires. Stop buying things you don’t really need. Stop the flow of money to those who have sold us out to foreign workers to the best of your ability. Check the labels on everything you buy, since even the things that don’t seem to make sense to import are being imported (I’ve seen cut flowers labeled from Brazil, 1 subject spiral notebook from India, potatoes from Canada prominently displayed, while the American potatoes for the same price were hidden amongst other produce, Vicks vaporub from Mexico while the store brand was made in America, etc.). In the long run, you may just be better off financially, as you realize you really don’t need some of this junk. Unfortunately, we are trying to turn a ship that’s full steam ahead towards an iceberg, and we almost certainly can’t stop it, but maybe we can buy a little more time to lessen the severity of the impact, and hopefully knock the super-rich in America down a few notches for what they’ve done in the process. And don’t just say “it won’t work”, because that is a lazy, loser answer. To have a rebellion that can actually impact powers-that-be, you need as many people that can contribute as possible. It is the overwhelming mass of the average people moving together that can force change on these people. United we stand!

  • Save the Republic

    Oh, and most of the stuff they are selling now is cheap garbage that constantly breaks anyway, so you are just throwing away good money after bad.

  • Kevin

    One problem inherent with power and leaders be it political or corporate is that ambition and greed usually hang out together. The ambitious rise to power and bring their long time friend geed with them. Only an informed citizenry unwilling to accept this friendship and willing to vote accordingly can bring honesty and integrity to at least one of these pillars of society. For far too long the citizens have been too lazy to become informed choosing entertainment to occupy their time. Marx said, “Religion is the opiate of the people”; he is wrong; “Entertainment is the opiate”.

  • Martin

    I sympathize with you Americans who are struggling to keep your lives and work going under these harsh conditions. I come from Europe[Netherlands] and we have simular problems although on a smaller scale,our nations debt is also smaller as the USA.
    But we are also troubled by unemployment and the so called free market economy. Where jobs are more and more lower in wage and very difficult to get a steady long term job.
    And borders are open to East Europeans to come in and work over here for far less wage then the locals do and also adding to a deminish in wage.
    Because Corporations are hiring people trough employment agencies for a few weeks or if your lucky a few months. But this creates uncertain futures and no possibility to buy a house. the main

  • Pigbitin Mad

    @Colin #1

    I believe you are talking about my favorite movie Wild in the Streets. The apocalyptic vision portrayed in that movie was obviously a spoof (based on the phrase “Don’t Trust anyone over Thirty” the Kennedy Mystique etc.) The real message behind that movie was that Max Frost (the Rock Star President/Dictator) turns into a Hitler. However, you are right that this “Nightmare Vision of the Future” is much more humane than the present GOP solution to our problem which is “Kick everyone to the curb, outsource the jobs to the cheapest locales and we and our buddies will rake in tons of cash. F everyone else if they are not left out of the game of musical chairs. Obviously they are too dumb and deserve to rot.

    And it was everyone over 30 that was put into the camp. Society is twenty times more age-ist now than it was in the sixties. I started feeling it when I was 35. Now that I am 49, I feel like I would like to go to that camp. At least they gave the oldsters an endless supply of LSD.

  • Pigbitin Mad

    PS,BTW I do boycott everything and I mean EVERYTHING made in China. My husband and I walk through the stores, check out the labels, and loudly proclaim such if it is made there. Then we make big show of putting it back. Sometimes, we actually get other people in on the act. And I keep posting my scathing reviews of products online and on Twitter. It may be a drop in the bucket, but it is gaining momentum. Corporate America produces junk over there. I mean the stuff breaks as soon as you open the box. People will get wise one of these days. It is just so bad!!

  • http://justchillcc.com alex

    lol id kill for 10$/hr better than my current 0$/hr

  • http://theeconomiccolapse nozdive

    A good place to start don’t shop walmart
    get these gluttons out of here. I petition walmart the most unamerican store in the country

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