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The Unemployed

January 7, 2011 – 5:55 pm

The unemployment claims jumped up this week after falling sharply for a number of weeks in a row, but that was not the important news this week. It was this morning’s jobs report for December. Our economy created 103,000 new jobs according to the official report. That was far different than the 297,000 the ADP report counted a few days ago and less than the 175,000 that was expected.

At the same time the official report said the unemployment rate fell to 9.4% from 9.8%. That is a number created out of the mists. Apparently, 500,000 people disappeared and are no longer counted. This is a particularly slight of hand government method of counting the unemployed. They are not purposefully misleading anyone it is just a poor method of counting. A method that everyone knows is flawed.

The number is what it is, those of us that watch these things always step back and look at a wider picture and the landscape it shows is that the economy is producing jobs. We need about 150,000 per month just to keep the unemployment rate the same. We still have to replace about 8,000,000 jobs lost during the recession. Therefore we need at least 250,000 per month to begin to put those people to work. We are looking at years to get us back to 2006 levels.

Good Trading
Steve Peasley

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