The unemployment rate dropped .4% from 9.4% to 9.0% in January. After first glance this appears to be great news. But only 36,000 net jobs were added, so why was there such a large drop? It is because the number of people dropping out of the labor market increased. People are just giving up looking for jobs and they are no longer counted. The full picture of unemployment if you account for those who are underemployed is around 18.9%. I wonder what it would be if we counted those who have just given up. It is hard to fathom that nearly 1 in 5 people who want to work are not working or are working part-time. I can’t image how hard it must be for them. I am sure they had great hope in the promises of the stimulus.
The graph below compares what the current administration promised us in order to justify the $900 billion stimulus plan vs. what they actually delivered. When I see how well the ‘experts’ in Washington are at predicting outcomes, I realize that we really can’t trust any of their predictions. Think about the promises this same administration has made in light of the impact of ObamaCare will have on our deficit and economy.