Friday, November 08, 2013

Well, Not Quite

CBS Evening News said last night that our economy grew 2.8% in the third quarter, after growing 2.5% in the second quarter. That would have our economy growing 11% for the year, which would be awesome. In actuality, our economy grew at an annual rate of 2.8% in the third quarter, which is a bit less exciting.

The Washington Post says today that the economy, "added 204,000 jobs in October, defying expectations of a weak labor market." As usual, they used data from the Employer Survey, which counts one person working two jobs as two people employed. From the Household Survey we find that the unemployment rate increased to 7.3% last week. It was reported by most media as "essentially unchanged," which is what they do when it rises, while when it drops by the same amount they say it "dropped slightly." It never "rises slightly," it only "drops slightly."

The article goes on to say that "This is good news for the economy," despite the report revealing that the labor force decreased by a whopping 730,000 people even though the population increased by 213,000.

Participation in the labor force dropped from 63.2% to 62.8% and workers who are "part time for economic reasons" increased by 125,000. The unemployment among people with "some college" rose by .3% and for college graduates it rose .1%. How all of that that is "good news for the economy" escapes me.

1 comment:

bruce said...

It's good for the people generating these reports.

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