Another 9.7% Unemployment Rate Report?

According to the Bureau of Labor and Statistics, the unemployment rate held steady at 9.7% (Click to See Full Story: Payrolls fall by 36,000; jobless rate steady at 9.7%).

What is amazing is the fact that, each month, the unemployment rate either holds steady (as in this February) or falls (as was the case in January) despite job losses. This month's report for February showed that 36,000 more people became unemployed. In addition, the number of people who lost their jobs in January was adjusted upwards by another 35,000 unemployed workers from the previously reported number. Add to those numbers the fact that the Federal Government added 15,0000 Census workers whose jobs will go away in few months and, effectively, this report is saying that 84,000 "more" workers have lost their jobs in the last two months. Yet, the unemployment rate remains the same.

What's even more disturbing about the report is the fact that the discouraged workers -- those who have completely given up looking for work -- rose from 16.5% to 16.8%. The discouraged workers number is what the Bureau of Labor and Statistics has been using to keep the unemployment rate artificially low. As I have said before, this exclusion of people who have given up looking for work from the greater workforce just makes those workers who do have a job a greater piece of a smaller workforce; making the unemployment rate appear to be less.

Now, to my last comment and the effect of the weather on this report. Even, the Bureau of Labor and Statistics, who mentioned the weather as part of their report, said they couldn't quantify it. So, Obama's chief economic adviser, Larry Summers, was all wet to say that weather would distort the unemployment picture. Then, too, I was wrong in saying that the unemployment rate would be higher than 9.8%. I guess I was too naive in thinking that the number of discouraged workers would abate and the unemployment number would start to rise again.

While, the media headline number will show an unemployment situation that is improving by leveling off, the reality is less than optimistic if you look below the surface. Every week, the economy continues to report that more than 469,000 workers are joining unemployment lines; and, that is a reality that says thing are still bad, economically and mentally, in this country. We really won't start creating jobs until that number gets below 350,000 on a weekly basis. Until then, this economy will still be in the doldrums.