The Beginning Of The End
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The Shocking Truth About Unemployment In America In One Chart

The mainstream media is not telling you the truth about unemployment in the United States.  The percentage of working age Americans that are employed is not increasing.  In March 2010, 58.5 percent of all working age Americans had a job.  In March 2012, 58.5 percent of all working age Americans had a job.  So if the employment rate is exactly the same as it was two years ago, then how in the world can the Obama administration claim that things have gotten significantly better since then?  According to the Bureau of Labor Statistics, the official unemployment rate in the United States was 9.8 percent in March 2010 and it declined to 8.2 percent in March 2012.  So how is this possible if the percentage of working age Americans that have jobs hasn’t moved?  Well, what they do is they claim that there are millions upon millions of Americans that have “left the labor force”.  In other words, they claim that there are millions upon millions of unemployed Americans that don’t want jobs anymore.  Of course that is a total farce, but the mainstream media and most Americans are buying it.  They actually believe that the unemployment rate is going down.  But the truth is that the unemployment crisis in America has not subsided.  In fact, we are pretty much exactly where we were two years ago, and things are about to get a whole lot worse.

If you want to know the shocking truth about unemployment in America, all you need to do is to look at one chart.  The chart posted below shows the change in the employment-population ratio over the past few years.  What the employment-population ratio measures is the percentage of working age Americans that actually have jobs.  As you can see, it fell dramatically during 2008 and 2009, and since then it has been hovering between 58 and 59 percent….

So there has been no employment recovery, and this is very odd because the employment-population ratio always bounces back after a recession.

The chart posted below shows how the employment-population ratio has changed since the late 1940s.  The shaded areas represent recessions.  Please take note that after every single recession (other than the current one) the employment-population ratio has always bounced back substantially.

During the most recent recession, the employment-population ratio fell farther than it had during any other recession in the post-World War II era.

If these were normal economic times, it would have been reasonable to expect a huge surge in hiring by now.

But we have not seen that.

Instead, the employment rate in the United States has been remarkably flat for more than two years.

So Barack Obama should not even begin to say anything at all about a “recovery” until the employment rate at least breaks the 59 percent barrier.

In the past I have written about how fraudulent the employment statistics put out by the federal government are.

Well, fortunately there are some folks up on Capitol Hill that are starting to take notice of this phenomenon as well.  There is a new bill in Congress that would change the way that the unemployment rate is calculated….

A Republican lawmaker is intensifying his push for legislation that would change how the government measures the unemployment rate. 

Rep. Duncan Hunter (R-Calif.) intends to press GOP leaders to move his bill to include the number of individuals who gave up looking for work in the percentage of jobless claims.

Of course there is probably not a chance that such a bill would ever get through the Senate, but at least some lawmakers are trying to get people to notice what is going on.

The sad truth of the matter is that the employment crisis in America is still about as bad as it was a couple of years ago.

Do you remember a couple of months ago when Barack Obama spoke with the wife of an unemployed engineer and asked her to send his resume to the White House?

Well, it turns out that the unemployed engineer still doesn’t have a job….

More than two months after President Barack Obama asked for Darin Wedel’s résumé, the phone is quiet, e-mails are no longer flooding in and the long-sought-after job interviews — which had begun to be scheduled — have petered out.

“Not even recruiting companies are calling anymore,” said Jennifer Wedel, the Fort Worth mother of two who chatted online this year with Obama about her out-of-work husband.

She says his job search has been hurt by a program to hire skilled foreign workers.

But Barack Obama is doing the same thing on a national level.

He is promising all of us that things are improving and that there will be lots of jobs for everyone soon, but it is all a lie.

The truth is that this period of relative stability that has been purchased by unprecedented levels of government debt will soon give way to even more economic trouble.

One of my readers recently brought to my attention a list of some of the major companies that are currently getting rid of workers….

Ford will be laying off 1,200 assembly line workers later on this month.

Pittsburgh-based paint and coating manufacturer PPG has announced that it will be laying off 2,000 workers.

J.C. Penney recently laid off 600 workers and has plans to lay off another 300 workers in July.

Lockheed Martin has announced that it will be laying off hundreds of workers.

Dow Chemical has announced that hundreds of workers are going to be laid off.

Yahoo has formally announced that it will be getting rid of about 2,000 workers.

Sony has announced plans to eliminate 10,000 jobs globally.

Even Oprah Winfrey is laying off workers.  Oprah is reducing the size of the staff at the OWN network by 20 percent.

Meanwhile, our economy continues to bleed jobs at an astounding pace.  At a time when American workers desperately need jobs, millions of them continue to be sent overseas.

In fact, even some jobs that you would think would be impossible to outsource are being given to foreigners.  Just recently, ABC News did a major report on all of the roads and bridges all over the United States that are being built by Chinese companies.  If you have not seen that report yet, you can view it online right here.

If you go into a Wal-Mart or a dollar store and you start turning over products you will find that huge numbers of them are made in China and that very few of them are made in the United States.  China is absolutely dominating us on the global economic stage.  Last year our trade deficit with China was the largest trade deficit that one nation has had with another nation in the history of the world.  Yet we continue to pursue the exact same trade policies year after year.

So how is the American economy ever supposed to recover if we continue to play to lose?

As a nation we spend far more than we make, we consume far more than we produce and our federal government implements thousands of new business-crippling regulations every single year.

If you still have a good job, you should treasure it and you should try to hold on to it for as long as you can.  Soon the next major economic downturn will be upon us and millions more Americans will lose their jobs and their homes.

Things did not have to turn out this way, but we made horribly bad decisions for decades and now the consequences are catching up with us.

You better get ready.

  • John Hinton

    “Out of the top 10% of the richest people in America, 1% of that is richer than the middle class and lower class combined” History does repeat it’s self, especially in past democratic nations” “look where they are, we soon will head”.

  • Blingo88

    What does it mean exactly to “Leave the workforce”? Does it mean that an american worker has stopped getting unemployment benefits? How does the government decide if someone has left the workforce and stopped looking for a job. How come we don’t count the number of americans who have “left the workforce”. Unemployment statistics have to be one of the biggest coverups in the history of the US. If the government counts the number of people receiving unemployment benefits to calculate the unemployment rate, then when the government extends unemployment benefits, shouldn’t the unemployment rate go up? How come the rate stayed the same or went down when the number of people receiving unemployment benefits went up. ????? Sounds fishy to me. I’m assuming its the people who have “left the workforce” that they’re building the new prisions and detention camps for.

  • Steve

    Job destruction has been going on since the 1960’s. Since 1968, 60 MILLION U.S. jobs have been destroyed. When 60 million U.S. jobs are destroyed over a 40 year period it means one thing – PERMANENT JOB DESTRUCTION. What jobs remain pay slave wages. And guess what? – in the next 80 years ONE HUNDRED MILLION U.S. jobs are going to be automated, i.e. destroyed. It’s gonna be ROAD WARRIOR, THE RUNNING MAN and ESCAPE FROM NEW YORK combined!!!!

  • Robert

    Ok guys and poeple. The thing is ((what are you talking about)). so you have old people not working to in a chart. who feeds off of them? who pays for them? You call it retirement. i call it unemployment. I know way too many people living OFF old peoples benifits. thats right. NOTHING IS FREE. YOUR RETIREMENT IS PAY BY UNEMPLOYMENT PEOPLE.End all retirement. End our economic crash.

  • Dan

    With folks out of work, out of extended benefits and now out of site out of mind as it pertains to the unemployment numbers. This administration uses this absence of tracking the numbers of the unemployed as a political positive. When you look up the definition of the word denial it reads “see Obama”.

    Pretending the economy is improving but then tries to convince us those that pay most of the taxes need to pay more. How can anyone see that as an improving economy. You should ask yourself do you want a job or make the successful pay more, because you can’t have both.

  • Peter H.

    To everybody. i always hear/read people talking about what we can do to create jobs. help stabilize the unemployment.(which is about 21% in the US. the loss of jobs is a symptom of a greater problem. we live in an outdated system. capitalism is coming to a close people. the sooner we as a species realize that the better we will be.
    now you free market fanatics who claim it the greatest economic system. ill agree but ask yourself one ? and tell me we cant do much better. “How sustainable is a system that relies on infinite growth on a finite planet?” let me explain when a country’s economy isn’t growing it goes into a recession right? therefore to keep unemployment down we must always grow. well nothing can gow forever. so we built this deck of cards that will boom then bust over and over again but eventually we will use up the earths resources to the point were growth is impossible.the unemployment in the short term is only going to get worse for 3 reasons
    1) mechanization- the technology we are developing is surpassing an outdated system.
    2) debt- large numbers of country’s are in debt,and to help balance the budget they will cut. the first to go will be social safety nets and government employees.
    3) globalization-. as more and more undeveloped countries offer to do labor for cheep, corporations will continue to higher those workers.
    check out a recourse biased economy and tell me it doesn’t not only sound much more sustainable but easily feasible. if we put the politics,special interests, most of all “profits” aside. use or technology/resources wisely,and give up on this pathetic of a system that has put profits above all else. causing our human potential to be cut off at the knees.

  • Scotty

    I am of Chinese background.

    I have lived in both Asia and I went to junior high school there. My grandfather escaped from China to Taiwan when he was only five years old. I was brought up with a fair dose of Chinese culture, even though most of my life has been spent in Eastern Canada and even worked in the US before.

    There is a key difference between the West and China right now is I know in America and Canada we all want to enjoy ourselves. How many students or newly married couples are knee deep in student loans, mortgages under water, credit card debt? Yet, to keep up with the Jones’s we take that annual vacation to Vegas to play craps and go “girls gone wild” at Daytona Beach. In China as in America and Canada we all work hard. Yet there is a key difference. In America and Canada: We work hard and we play hard. We spend all the money that we make on the newest gadgets iPhone 5 and iPads. In china, they work hard and they hardly play. Ironically, it is China that has the Protestant work ethic. They work 12 hour days, take rigorous classes in mathematics and engineering, save, invest, and plan for the future. I see American and Canadian kids taking psychology, liberal arts, and theology because they have been told to “follow their hearts”. Then, they complain once they graduate from university that they can’t find jobs. I work for Citibank and they outsource thousands of high paying jobs to India at a company called Wipro. Why can’t they hire Americans? Well, they don’t have the skills because they studied “Environmental studies” or “Women’s studies” in university and the ones that do have the skills are already making $150k per annum at Facebook or Google.

    Kids in America and Canada – wake up. Anyone have any comments write me

  • jeefray

    Stop buying goods that are not made in America. Demand that the tax code be rewritten to not benefit American Corporations that off shore American Jobs. How do you expect to solve unemployment when all you have are college students with MBA’s and an untrained workforce? This didn’t happen overnight and it won’t be fixed overnight. Quit spending your money and banking with people that take more than they give.

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