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Paul Craig Roberts: "The US Economy's Phantom Jobs Gains Are A Fraud"

Tyler Durden's picture


Authored by Paul Craig Roberts,

Washington can’t stop lying. Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.

In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams ( wrote that the 288,000 June jobs and 6.1% unemployment rate are “far removed from common experience and underlying reality.” Payrolls were overstated by “massive, hidden shifts in seasonal adjustments,” and the Birth-Death model added the usual phantom jobs.

Williams reports that “the seasonal factors are changed each and every month as part of the concurrent seasonal-adjustment process, which is tantamount to a fraud,” as the changes in the seasonal factors can inflate the jobs number. While the headline numbers always are on a new basis, the prior reporting is not revised so as to be consistent.

The monthly unemployment rates are not comparable, so one doesn’t know whether the official U.3 rate (the headline rate that the financial press reports) went up or down. Moreover, the rate does not count discouraged workers who, unable to find a job, cease looking. To be counted among the U.3 unemployed, the person must have actively looked for work during the four weeks prior to the survey. The U.3 rate automatically declines as people who have been unable to find jobs cease trying to find one and thereby cease to be counted as unemployed.

There is a second official measure of unemployment that includes people who have been discouraged for less than one year. That rate, known as U.6, is seldom reported and is double the 6.1% rate.

Since 1994 there has been no official measure than includes discouraged people who have not looked for a job for more than a year. Including all discouraged workers produces an unemployment rate that currently stands at 23.1%, almost four times the rate that the financial press reports.

What you can take away from this is the opposite of what the presstitute media would have you believe. The measured rate of unemployment can decline simply because large numbers of the unemployed become discouraged workers, cease looking for work, and cease to be counted in the U.3 and U.6 measures of the unemployment rate.

The decline in the employment-population ratio from 63% prior to the 2008 downturn to 59% today reflects the growth in discouraged workers. Indeed, the ratio has not recovered its previous level during the alleged recovery, an indication that the recovery is an illusion created by the understated measure of inflation that is used to deflate nominal GDP growth.

Another indication that there has been no recovery is that Sentier Research’s index of real median household income continued to decline for two years after the alleged recovery began in June 2009. There has been a slight upturn in real median household income since June 2011, but income remains far below the pre-recession level.

The Birth-Death model adds an average of 62,000 jobs to the reported payroll jobs numbers each month. This arbitrary boost to the payroll jobs numbers is in addition to the Bureau of Labor Statistics’ underlying assumption that unreported jobs lost to business failures are matched by unreported new jobs from new business startups, an assumption that does not well fit an economy that fell into recession and is unable to recover.

John Williams concludes that in current BLS reporting, “the aggregate average overstatement of employment change easily exceeds 200,000 jobs per month.”

In other words, the economy did not gain 288,000 new jobs last month. But let’s assume the economy did gain 288,000 jobs and exam where the claimed jobs are reported to be.

Of the alleged 288,000 new jobs, 16,000, or 5.5 percent are in manufacturing, which is not very promising for engineers and blue collar workers. Growth in goods producing jobs has almost disappeared from the US economy. As explained below, to alter this problem the government is going to change definitions in order to artificially inflate manufacturing jobs.

In June private services account for 82 percent of the supposed new jobs. The jobs are found mainly in non-tradable domestic services that pay little and cannot be exported to help to close the large US trade deficit.

Wholesale and retail trade account for 55,300 jobs. Do you believe sales are this strong when retailers are closing stores and when shopping malls are closing?

Insurance (most likely the paperwork of Obamacare) contributed 8,500 jobs.

As so few can purchase homes, “real estate rental and leasing” contributed 8,500 jobs.

Professional and business services contributed 67,000 jobs, but 57% of these jobs were in employment services, temporary help services, and services to buildings and dwellings.

That old standby, education and health services, accounted for 33,700 jobs consisting mainly of ambulatory health care services jobs and social assistance jobs of which three-quarters are in child day care services.

The other old standby, waitresses and bartenders, gave us 32,800 jobs, and amusements, gambling, and recreation gave us 3,500 jobs.

Local government, principally education, gave us 22,000 jobs.

So, where are the jobs for university graduates? They are practically non-existent. Think of all the MBAs, but June had only 2,300 jobs for management of companies and enterprises.

Think of the struggle to get into law and medical schools. There’s no job payoff. June had jobs for 1,200 in legal services, which includes receptionists and para-legals. Where are all the law school graduates finding jobs?

Offices of physicians (mainly people who fill out the mandated paperwork and comply with all the regulations, which have multiplied under ObamaCare) hired 4,000 people. Outpatient care centers hired 700 people. Nursing care facilities hired 2,400 people. So where are the jobs for the medical school graduates?

Aside from all the exaggerations in the jobs numbers of which has informed us, just taking the jobs as reported, what kind of economy do these jobs indicate: a superpower whose pretensions are to exercise hegemony over the world or an economy in which opportunities are disappearing and incomes are falling?

Do you think that this jobs picture would be the same if the government in Washington cared about you instead of the mega-rich?

Some interesting numbers can be calculated from table A.9 in the BLS press release. John Williams advises that the BLS is inconsistent in the methods it uses to tabulate the data in table A.9 and that the data is also afflicted by seasonal adjustment problems. However, as the unemployment rate and payroll jobs are reported regardless of their problems, we can also report the BLS finding that in June 523,000 full-time jobs disappeared and 800,000 part time jobs appeared.

Here, perhaps, we have yet another downside of the misnamed Obama “Affordable Care Act.” Employers are terminating full-time employment and replacing the jobs with part-time employment in order to come in under the 50-person full time employment that makes employers responsible for fringe benefits such as health care.

Americans are already experiencing difficulties making ends meet, despite the alleged “recovery.” If yet another half million Americans have been forced onto part-time pay with consequent loss of health care and other benefits, consumer demand is further compressed, with the consequence, unless hidden by statistical trickery, of a 2nd quarter negative GDP and thus officially the reappearance of recession.

What will the government do if a recession cannot be hidden? If years of unprecedented money printing and Keynesian fiscal deficits have not brought recovery, what will bring recovery? How far down will US living standards fall for the 99% in order that the 1% can become ever more mega-rich while Washington wastes our diminishing substance exercising hegemony over the world?

Just as Washington lied to you about Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons, Russian invasion of Ukraine, Waco, and any number of false flag or nonexistent attacks such as Tonkin Gulf, Washington lies to you about jobs and economic recovery. Don’t believe the spin that you are unemployed because you are shiftless and prefer government handouts to work. The government does not want you to know that you are unemployed because the corporations offshored American jobs to foreigners and because economic policy only serves the oversized banks and the one percent.

Just as the jobs and inflation numbers are rigged and the financial markets are rigged, the corrupt Obama regime is now planning to rig US manufacturing and trade statistics in order to bury all evidence of offshoring’s adverse impact on our economy.

The federal governments Economic Classification Policy Committee has come up with a proposal to redefine fact as fantasy in order to hide offshoring’s contribution to the US trade deficit, artificially inflate the number of US manufacturing jobs, and redefine foreign-made manufactured products as US manufactured products. For example, Apple iPhones made in China and sold in Europe would be reported as a US export of manufactured goods. Read Ben Beachy’s important report on this blatant statistical fraud in CounterPunch’s July 4th weekend edition:

China will not agree that the Apple brand name means that the phones are not Chinese production. If the Obama regime succeeds with this fraud, the iPhones would be counted twice, once by China and once by the US, and the double-counting would exaggerate world GDP.

For years I have exposed the absurd claim that offshoring is merely the operation of free trade, and I have exposed the incompetent studies by such as Michael Porter at Harvard and Matthew Slaughter at Dartmouth that claimed to prove that the US was benefitting from offshoring its manufacturing. My book published in 2012 in Germany and in 2013 in the US, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, proves that offshoring has dismantled the ladders of upward mobility that made the US an opportunity society and is responsible for the decline in US economic growth. The lost jobs and decline in the middle class has contributed to the rise in income inequality, the destruction of tax base for cities and states, and loss of population in America’s once great manufacturing centers.

For the most part economists have turned a blind eye. Economists serve the globalists. It pays them well.

The corruption in present-day America is total. Psychologists and anthropologists serve war and torture. Economists serve globalism and US financial hegemony. Physicists and chemists serve the war industries. Physicists and computer geeks serve NSA. The media serves the government and the corporations. The political parties serve the six powerful private interest groups that rule the country.

No one serves truth and liberty.

I predict that within ten years truth and liberty will be forbidden words uttered only by “domestic extremists” who are a threat that must be exterminated without due process of law.

America has left us. We now have the tyranny of the Orwellian state that rules, not by the ballot box and Constitution, but by force and propaganda.


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Mon, 07/07/2014 - 16:34 | 4932968 One And Only
One And Only's picture

What's so fucking hard about this.

Take the number of people living in the US that are of legal age to work and subtract all people not working (any reason).

That's the unemployment rate. Can someone provide to me this number?

Mon, 07/07/2014 - 16:37 | 4932980 TahoeBilly2012
TahoeBilly2012's picture

Everyone will have a job for the coming WW3. You just need to have flexible skills.

Mon, 07/07/2014 - 16:39 | 4932984 One And Only
One And Only's picture

You're either feeding into the ponzi scheme or taking out from it. This is the only number I need to gauge the health of the economy.

Mon, 07/07/2014 - 16:45 | 4933016 Shocker
Shocker's picture

No Comment needed

Layoff / Business Closing List:


Mon, 07/07/2014 - 16:51 | 4933044 max2205
max2205's picture

If it's not a war crime, then they could care less.

They spin....that's it

Mon, 07/07/2014 - 17:25 | 4933129 jbvtme
jbvtme's picture

doesn't look good. next you'll be crying that the cotton thread count on the bed sheets in the detention center will be less than 200 ...

Mon, 07/07/2014 - 17:31 | 4933194 graneros
graneros's picture

Great article by PCR. That's it in a nutshell nothing more need be said.

Mon, 07/07/2014 - 21:33 | 4934023 stoneworker
stoneworker's picture

I think he should run for president....I would donate to his campaign.

Mon, 07/07/2014 - 17:17 | 4933138 rubiconsolutions
rubiconsolutions's picture

"If it's not a war crime, then they could care less."

Even if it's a war crime they couldn't care less. Ask Madeleine Albright when she told CBS nonchalantly that the deaths of 500,000 Iraqi children was "worth it". 

Mon, 07/07/2014 - 17:45 | 4933253 Winston Churchill
Winston Churchill's picture

Or Hitlary "we came,we saw,we killed".

These fucker better hope they die soon.The new Nuremburg trials will

follow the dollars' collapse.

Mon, 07/07/2014 - 18:25 | 4933365 Squid Viscous
Squid Viscous's picture

my sister in law makes $47 an hour working from home on the interwebs, so don't say there's no good jobs out there! she just has to suck mystery cock a few times a day...

Mon, 07/07/2014 - 18:55 | 4933480 oddjob
oddjob's picture

Lizard Albright = repugnant fascist hag

Mon, 07/07/2014 - 20:41 | 4933810 Keyser
Keyser's picture

Can someone provide to me this number?


There are 247,000,000 working age Americans...

There are 92,000,000 either under-employed or unemployed...

The total unemployment rate based on these numbers is 37.24%

Tue, 07/08/2014 - 10:17 | 4935167 homonohumanus
homonohumanus's picture

I had some fun going through some data for my country (France) and mostly we face the same oddities...

For my department, I found official data for the number of active people and the number of unemployed people.

I calculated the percentage myself and I found 16%, the government.... 10.1%


Now I wonder about that number 247 millions, it sounds a bit high to me.


Here we are lying on that too, the country is ~65 millions, here is the age distribution:

MOst are done with their studies in the early 20 and retirement happen ~65 now, yet looking at the picture above and looking at the official figure for active population (28 millions), I feel like we are facing another massive lie...

I wish we have French shadowstat, I've the extremely oppressing feeling that in fact France could have the worse accountability of the western Europe. People here live in a fantasy world, one of different flavor as the one most US people are bathed into, but yet the level of illusion and manipulation is every bit as hight, I would actually say higher.

At least in US I feel a survival instinct even within those completely mislead wrt the real state of the country (be it economical, politic, etc.).

Mon, 07/07/2014 - 16:48 | 4933030 MidwestJester
MidwestJester's picture

Feeding into.... :(

Mon, 07/07/2014 - 16:54 | 4933046 Dr. Engali
Dr. Engali's picture

That "job" thanks to WWIII will last all of 30 minutes, from launch to incineration.

Mon, 07/07/2014 - 17:14 | 4933120 Cattender
Cattender's picture

the Propaganda is deepening comrades..

Mon, 07/07/2014 - 16:38 | 4932983 Gumbum
Gumbum's picture

What you are looking for is the labor force participation rate:

Mon, 07/07/2014 - 17:13 | 4933115 Coke and Hookers
Coke and Hookers's picture

The labor force participation rate in the US is currently somewhere between 50% and 62% (who the fuck knows what the real number is?). A modern country with close to "full employment" where almost everybody who wants to work / can work can get a job has a rate of about 80% (the 20% are people who work at home, disabled people plus the unemployable pond scum of society such as artists and drug addicts). The difference between the participation rate and 80% is the approximate unemployment rate. The unemployment rate of ca 25% for the US matches this more or less. My theory is that you can't run a northern European style "welfare state" with "free" healthcare and stuff like that with a participation rate lower than 75% or so. If we assume that's correct it doesn't take a genious to see what the situation is in the US. I also believe that the US is incapable of reaching 80% because a larger part of the employment pool is basically unemployable than in northern Europe. All you have to do is take a walk is certain areas in virtually any American city and look around. What you see are a lot of people no employer in his right mind would ever hire.

Mon, 07/07/2014 - 17:32 | 4933195 Make_Mine_A_Double
Make_Mine_A_Double's picture

+1 - LOL what you say is true.

If I had to coin a number for 'real unemployment' in USSA I'd mark it at 25-30% percent. That would not include the transitional float either.

And yes, a very large component of this are now completely unemployable dregs.  

Mon, 07/07/2014 - 17:47 | 4933258 Oldwood
Oldwood's picture

But this is key;

"A modern country with close to "full employment" where almost everybody who wants to work"

How many actually want to work? I mean really work, not just show up with a diploma or just their lunch?

Wealth is productivity. people working for the government or otherwise sitting on their ass all day producing little, are not contributing to societies productivity. You are either a net producer or net consumer and we can see which is winning out right now. This is the "cost" of these leftist policies. Not dollars, but productivity, and this is concealed with debt and redistribution.

Mon, 07/07/2014 - 18:19 | 4933350 Never One Roach
Never One Roach's picture

"Working makes my head hurt...."

Mon, 07/07/2014 - 16:48 | 4933022 HamRove
HamRove's picture

Yeah but but but but......

That number sucks. 

6.8% unemployment sounds SOOOOO much better.

Like a warm hand messaging you into a deep trance state..........


Mon, 07/07/2014 - 18:30 | 4933392 Peanut Butter E...
Peanut Butter Engineer's picture

And unknownly you just let that warm hand molested you.

Mon, 07/07/2014 - 17:15 | 4933125 Jumbotron
Jumbotron's picture

"What's so fucking hard about this.

Take the number of people living in the US that are of legal age to work and subtract all people not working (any reason).

That's the unemployment rate. Can someone provide to me this number?"


About 37% unemployment

Mon, 07/07/2014 - 17:26 | 4933176 One And Only
One And Only's picture

Thank you.

Mon, 07/07/2014 - 19:22 | 4933571 drendebe10
drendebe10's picture

All this on the watch of the incompetent, corrupt, arrogant, narcissistic illegal indonesian kenyan alien muslim sociopathic liar and chief and all its progressive democrap tax and spend minions...   WTF - wake the frack up you frackin sheeple..... 

Mon, 07/07/2014 - 16:40 | 4932969 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

As I understand it, the majority of job gains posted in the June jobs report are low-wage, part-time jobs, while better paid full-time jobs have suffered substantial losses. If this is true, the disposable income of the American middle class should continue to drop sharply, which will have large ramifications on the country's economy as a whole.

It lends weight to the notion that the economic recovery is something of a mirage, and that the gains from central bank policies over these last few years have been going to Wall Street rather than to Main Street.

Mon, 07/07/2014 - 16:43 | 4933002 chubbyjjfong
chubbyjjfong's picture

Absolutely.  Every single dollar printed, is a dollar taken from the working class and given to Wall St.

Mon, 07/07/2014 - 16:44 | 4933007 centerline
centerline's picture

Shhhhh....  you dont want to spook anyone know with all that truthiness.

Just take out an Obama-loan for college, sign up for 1 class, and party like hell.  Throw a few credit cards in the mix.  Hell yeah.  If you have a house, leverage that bitch!  Everyone is doing it!

Best of all, your neighbors will think you have the "magic secret" to the current economy.  They will be green with envy.  You'll be a star.

Figure out how to get an Escalade on a 10 year note and make just enough payments to keep the repo guy at bay too.  Don't forget the bling.

Mon, 07/07/2014 - 17:55 | 4933281 neidermeyer
neidermeyer's picture

If my job "goes away" that's exactly what I'm doing .. take 1 class , get a 100K or better loan ... work something like pizza delivery so as to not burn cash... and convert as much of that loan into cash as I can .. when the SHTF actual paper cash will be impossible to find and I'll have a suitcase of stripper wads...

Mon, 07/07/2014 - 18:29 | 4933389 cameldojo
cameldojo's picture

It's a miragicle recovery!

Mon, 07/07/2014 - 16:45 | 4932985 starman
starman's picture

Any of you heard of L1A and H- 1 B work visas?

Most US firms hire Indians from India to do a Americans job for 1/3 less! 

So while there are jobs it ain't for you  American worker.

Mon, 07/07/2014 - 16:46 | 4933018 pods
pods's picture

I'm in the sciences, I've heard.


Mon, 07/07/2014 - 18:38 | 4933388 Squid Viscous
Squid Viscous's picture

Ever been on the a.m. rush train from Metropark NJ, holy Gandhi hell,I was the only non-Indian on the whole fucking train, no exaggeration, and if I had to do that every work day I would blow my brains out first...not so much the gunjis, but the awful hellishness in general - then have to fight your way out of Penn Station, and then fight your way home again in 8-10 hours, then get up and do it again... the American Dream

Mon, 07/07/2014 - 18:36 | 4933414 pelican
pelican's picture

Not to mention they often have no college loans the US serfs have

Tue, 07/08/2014 - 09:57 | 4935105 Gavrikon
Gavrikon's picture

And they attended that fake Indian Insitute of Technology.

And GOd, what about the stench?

Mon, 07/07/2014 - 16:40 | 4932988 samsara
samsara's picture

Thanks Tylers,

Another Great writer of our times that you have picked up on.

Mon, 07/07/2014 - 16:40 | 4932989 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

You don't fucking say.

Mon, 07/07/2014 - 16:40 | 4932993 chunga
chunga's picture

An Open Letter To The Financial Media

Marla Singer - July 24, 2009

Mon, 07/07/2014 - 17:08 | 4933095 ThroxxOfVron
ThroxxOfVron's picture

God bless You, Marla Singer, who ever and where ever You are.

Once upon a time Fight Club had a muse...

Mon, 07/07/2014 - 17:23 | 4933165 chunga
chunga's picture

Damn straight.

The weapons grade spin on jobs, djia, fraud, etc. is more bogus by the day.

Like Marla said back in '09 "A drowning institution grasps at anything that floats."

Mon, 07/07/2014 - 19:29 | 4933593 Boozer
Boozer's picture

Marla can write!  I thought she showed up in the comments a couple years ago when I

first found ZH after reading Dark she still around?

Didn't she host/dj a Friday jam way back?  My dumb ass got here late.

Mon, 07/07/2014 - 16:41 | 4932996 Dr. Engali
Dr. Engali's picture

The solution is simple. We should import millions of immigrants to fill all of those vacant jobs and grow our eCONomy. Problem solved.

Mon, 07/07/2014 - 16:45 | 4933008 pods
pods's picture

If ya can't bring amerika to the third world fast enough, simply bring the third world to 'merika.

I hope they brought us some bananas?

I have as much empathy for these kids as anyone, after all I realize that it was a tin pot dictator we put in signing debt deals we sponsored that didn't lead to economic progress that we predicted that caused 90% of this shit.


Mon, 07/07/2014 - 16:49 | 4933033 centerline
centerline's picture

Maybe, just maybe we could telegraph something somehow that would make it seem that if countless immigrants jumped the border that there would likely not be any reprocussions...  hmmm...

any ideas?

Mon, 07/07/2014 - 17:00 | 4933071 youngman
youngman's picture

Those illegals are all going to get a lawyer...which means a bunch of a secretary or two ..for the two and from the courts...gas and autos and of course..medical of course..just think of all the jobs we shoot holes in our own boat....

Mon, 07/07/2014 - 17:09 | 4933101 negative rates
negative rates's picture

The tide doesn't lift all boats when yer floating yer own.

Mon, 07/07/2014 - 16:41 | 4932998 silverisgold
silverisgold's picture

And one ring the rule them all: Lies!


Mon, 07/07/2014 - 16:56 | 4932999 pods
pods's picture

Washington doesn't have to stop lying. A large enough percentage of the population wants to believe whatever shit is fed them.

They are lying FOR their benefit. 

We are approaching a water landing at a 45 degee angle at 500 knots and look around you. Faces as calm as Hindu cows.


Mon, 07/07/2014 - 16:44 | 4933003 CitizenPete
CitizenPete's picture

Finally released:  


Corbett Report presents: 

Century of Enslavement: The History of The Federal Reserve

Mon, 07/07/2014 - 16:52 | 4933009 socalbeach
socalbeach's picture

Just a matter of time until they start counting people who mow their own lawns, change their oil, grow their own food, or cook their own meals, as employed.  And since if you do the work yourself as opposed to hiring someone, GDP wouldn't be as large, they will boost GDP for all the work you do for yourself or family. 

Mon, 07/07/2014 - 17:12 | 4933114 hidingfromhelis
hidingfromhelis's picture

When this day comes, make sure you claim that on your IRS forms and pay the appropriate taxes.  /sarc

Mon, 07/07/2014 - 19:21 | 4933570 Pure Evil
Pure Evil's picture

That's extremely hard to do if you live in a discarded refridgerator box under an interstate bridge down by the river.

If it makes you feel better you can paint a van with wheels on your box so it looks like you're living in a van down by the river.

Mon, 07/07/2014 - 17:20 | 4933151 MidwestJester
MidwestJester's picture

I think we are closer to the point where you are counted as a terrorist if you do these things as they do subtract from GDP (how dare you?!?)

Mon, 07/07/2014 - 16:56 | 4933014 Bioscale
Bioscale's picture

The political parties serve the six powerful private interest groups that rule the country.

What or who are these 6 groups? The most important information in the text and there are no further details? Fuck.

Mon, 07/07/2014 - 16:57 | 4933066 Jackagain
Jackagain's picture

The Fed (central banksters), the RAND Corp. and the Pilgrims Society are three of them...                                                                                                          


Mon, 07/07/2014 - 17:28 | 4933185 kowalli
kowalli's picture


2military (legal army),

3health care,



6CIA (illegal army of mercenaries,drugs and etc..)

Mon, 07/07/2014 - 16:49 | 4933031 Make_Mine_A_Double
Make_Mine_A_Double's picture

Putting aside the total horseshit peddled in the 'jobs report' most all of which was part time garbage.

I have noted in the past fort night some major layoffs are in full swing. Not only that but even the Japanese company down the hall had their Dutch subsidiary buy them and move their corp HQ to Holland from USSA to save on the corporate tax and than shut down their office here in Seattle and is relocating to Houston.

None of the Seattle office employees were offered relo positions. So 20 full time good wage jobs just went poof.

I see this being repeated all over now. Propaganda not withstanding we seem to be in another down sizing mode.

Mon, 07/07/2014 - 16:50 | 4933039 Jackagain
Jackagain's picture

This fake report was used to knock down gold prices. These rats will stop at nothing to kill good money...

Mon, 07/07/2014 - 17:57 | 4933282 Oldwood
Oldwood's picture

The only "real" money will be that which can be tracked, transferred and stolen via the internet. They must kill gold just as they are killing the dollar, softly with their love.

Mon, 07/07/2014 - 16:55 | 4933052 papaswamp
papaswamp's picture

The participation rate is possibly not capturing the whole picture. O care and increased taxes have caused another event. People working less on purpose to either qualify for subsidies or reduce the impact of taxes. It used to be beneficial for both spouses to work, but now in many cases it is too expensive. Avoiding the next tax bracket up or earning less to qualify for subsidies is the new work less incentive.

Though not mentioned by many, the last report saw a decline in the participation rate for 25-54 and a rise in the 20-24yr old (NSA). Summer job workers are now active and meat of the workforce continues to degrade. July report could be very interesting..

Mon, 07/07/2014 - 16:55 | 4933055 youngman
youngman's picture

The Kardashians were just on CNBC....that pretty much is the peak for me....prostitution works....and that is all that they are...incredible they make money...

Mon, 07/07/2014 - 17:05 | 4933081 Rainman
Rainman's picture

The Karwrecks make nothing near what the boyz in the hood make moving smack ... all unemployed so to speak.

Tue, 07/08/2014 - 09:59 | 4935116 Gavrikon
Gavrikon's picture

Why don't they just call their show, "Mingling with the Mudsharks?"

Mon, 07/07/2014 - 16:58 | 4933056 Chuck Knoblauch
Chuck Knoblauch's picture

So, where are the jobs for university graduates? They are practically non-existent. Think of all the MBAs, but June had only 2,300 jobs for management of companies and enterprises.

Think of the struggle to get into law and medical schools. There’s no job payoff. June had jobs for 1,200 in legal services, which includes receptionists and para-legals. Where are all the law school graduates finding jobs?

Offices of physicians (mainly people who fill out the mandated paperwork and comply with all the regulations, which have multiplied under ObamaCare) hired 4,000 people. Outpatient care centers hired 700 people. Nursing care facilities hired 2,400 people. So where are the jobs for the medical school graduates?




Mon, 07/07/2014 - 16:59 | 4933068 Bioscale
Bioscale's picture

So where are the jobs for the medical school graduates?

In Asia maybe?

Mon, 07/07/2014 - 17:01 | 4933075 Chuck Knoblauch
Chuck Knoblauch's picture

The Asians don't even want to live/work in the U.S. anymore.

Obozo's circus acts are getting tiresome.

Mon, 07/07/2014 - 19:25 | 4933579 Pure Evil
Pure Evil's picture

Ya know, somebody had to print off all those worthless diplomas, so there's a few jobs we can count.

Mon, 07/07/2014 - 23:01 | 4934242 August
August's picture

Non-pauper Latin Americans don't really want to live in the USA, either, though they may enjoy shopping visits.

Latin America may or may not be "the land of tomorrow", but the USA is pretty obviously "the land of the yesterday".

Mon, 07/07/2014 - 16:59 | 4933064 Ivan Nokabolokov
Ivan Nokabolokov's picture

Part time jobs and the end of full time jobs was exactly what Alvin Toffler predicted in 'The Third Wave' some twenty years ago.. So what, things change.

Mon, 07/07/2014 - 17:40 | 4933232 chunga
chunga's picture

Holy crap I must be a nerd. I read that book when it came out...I was just a kid.

Mon, 07/07/2014 - 16:59 | 4933067 Milestones
Milestones's picture

Funny I just got back from Wally's--$2.00 per pound on apples, oranges, grapes and hard peaches; and then drove past my gas station.

4.00 for gas and the mail man just brought me my insurace policy up 7% from last renewal. Gawd, and I'm only part way thru the day.


Can't hardly wait for September to come around. Ya Hoo!!!         Milestones 

Mon, 07/07/2014 - 21:47 | 4934065 lakecity55
lakecity55's picture


Unemployement is only 6%.
Inflation is only 2.4%.
The Border is secure!
Look! Squirrel!!!
On the job yesterday, all the construction workers were talking about the Indian budget due out next week. Everywhere I go, these folks are plugged into what is happening with their government. Inflation is up, people are hustling.

I am embarrased. If we moved a few million of these guys to DC, they would solve the politician problem in a unique way!

Mon, 07/07/2014 - 17:06 | 4933089 Tigg47
Tigg47's picture

On/Off topic:

I walked the one-hour walk to "Cirque de Gavernie" a few days ago. You can hire a horse instead.

These horses are being FED and what used to be horsefood is piled on this road. Suddenly the following thought struck me: "FED" and "SHIT" zing together like two magnets!. Horsemanure is what we are being FED.

Mon, 07/07/2014 - 17:11 | 4933102 deflator
deflator's picture

 The Orweillian State started fudging numbers in a slow gradual rhythm during our parents and grandparents lifetimes. Now in our childrens lifetimes they are in to the hard pounding mindfuck climax stage of throwing the truth down the memory hole.

Mon, 07/07/2014 - 17:10 | 4933103 ramacers
ramacers's picture

and how long is the line willing to die to reverse things?

Mon, 07/07/2014 - 17:13 | 4933116 deflator
deflator's picture

 We have always been at war with Eastasia?

Mon, 07/07/2014 - 17:14 | 4933119 Gawd
Gawd's picture

Offices of physicians (mainly people who fill out the mandated paperwork and comply with all the regulations, which have multiplied under ObamaCare) hired 4,000 people. Outpatient care centers hired 700 people. Nursing care facilities hired 2,400 people. So where are the jobs for the medical school graduates?

Just for clarity. You can't equate physician jobs with those that fill out the paperwork in physician offices, outpatient centers and nursing homes. The unemployement rate for physicians who want to and can work is zero. Medical school graduates are not filling out the admissions and billing forms. They may have to sign them, but they don't fill them out. Medical school grands are not being hired as CNA's in nursing homes to change diapers.

Mon, 07/07/2014 - 17:50 | 4933228 deflator
deflator's picture

"The unemployement rate for physicians who want to and can work is zero."

 How do we know? Healthcare is injected with over a trillion dollars a year with government "money."(debt creation) How do we know, "how much" of anything that is accomplished by government decree is enough, too much or just the right amount if government can continuously print and decree moar is necessary?  If not for over a trillion dollars a year in government spending, healthcare(as we know it) would implode like a deathstar. You might say that government debt creation for healthcare is pragmatically "ok" because it is needed but I ask once again, "How do we know how much".

Mon, 07/07/2014 - 17:14 | 4933123 Gusher
Gusher's picture

"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."  Reagan said it. Obama ran with it

Mon, 07/07/2014 - 17:41 | 4933235 Hannibal
Hannibal's picture

Okay, what?

Mon, 07/07/2014 - 17:46 | 4933251 teslaberry
teslaberry's picture

maybe obamacare has a plan for the robots to keep them o'healthy?

Mon, 07/07/2014 - 17:52 | 4933271 dot_bust
dot_bust's picture

Between the fake job ads and the fake employment statistics, I'm completely flabbergasted.

Mon, 07/07/2014 - 18:07 | 4933309 yellowsub
yellowsub's picture

Right, of all the data they have on you like SS#, they can't provide accurate reports...

Mon, 07/07/2014 - 18:10 | 4933321 toadold
toadold's picture

"I'm shocked! I tell you,  shocked!" that anybodys left  who doesn't think we are being lied to about everything.

Mon, 07/07/2014 - 18:28 | 4933383 Duc888
Duc888's picture


Chuck Noblauch:

"So, where are the jobs for university graduates? They are practically non-existent. Think of all the MBAs...."


Be an annntraaapeeenourrr.  Open a lemonaide stand, just make sure you pulled the correct town permits.

Mon, 07/07/2014 - 18:32 | 4933403 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

This is going to be one epic meatgrinder when the wheels come off...get right with your creator.

Mon, 07/07/2014 - 18:57 | 4933494 Playtime's Over
Playtime's Over's picture
  1. Look around at the twenty somethings, the neck tat bi-curious generation ain't pulling no wagon for grandma living in mom's basement.  Children of the corn.........hole.
Mon, 07/07/2014 - 19:24 | 4933578 Raging Debate
Raging Debate's picture

Looks like a number '1' inserted before your post in front of the upvote symbol.

Mon, 07/07/2014 - 19:30 | 4933596 tony bonn
tony bonn's picture

i have loved paul craig roberts since his reagan days and this essay is reinforcement of that admiration.

Mon, 07/07/2014 - 19:40 | 4933621 d edwards
d edwards's picture

"Washington" can't stop lying.


No, Washington is a euphemism for TPTB ie: fucking 0bamao.

Think about it: has he ever really told the truth?


Maybe when he said "we are just five days away from fundamentally transforming the USA" yeah, that was the truth.

Hows the transformation workin' for you?

Mon, 07/07/2014 - 20:14 | 4933711 TrulyStupid
TrulyStupid's picture

Give the red/blue thing a rest... its pretty clear that Obama has no real power and can only advance the agenda he was given. All this Obama hate is just another red herring to obscure where the real levers of power are pulled.

Mon, 07/07/2014 - 21:40 | 4934037 lakecity55
lakecity55's picture


Indoctrination by communist Frank M. Davis as a youth: a "Red" Herring indeed!!
"Tell me more about Lenin, Uncle Frank!"
"OK, but suck this first."
"*Slurp slurp*--So, all good commies do this, Frank?"
"Uhhh, errr, ahhh, yeah. Stalin, Lenin, Marx, yep, all of 'em. Go faster, boy! Your mom is due over for errr, ahhh, a photo session."

Mon, 07/07/2014 - 21:32 | 4934025 lakecity55
lakecity55's picture

How about "Hail Satan" when you play "Yes We Can" backwards??

I saw that on UTube, and thought it was a joke until I actually listened to it. It was Creepy.

Hahaha, that is also the Truth. Many of the readers may remember the "sudden" death of the Demoncrap operative in Denver who saw Bath House burned out, dragging, go into a room with his handlers. He heard weird chanting, and then Super Bath House emerged, pumped with energy and a strange look in his eyes. The mid-level operative said hello, but Super Bath House did not even recognize him......strange days indeed.

Perhaps the International Termites who control the Bath House are......satanists!


Mon, 07/07/2014 - 21:50 | 4934071 lakecity55
lakecity55's picture

The Regime is hiding the fact we have Great Depression 1 unemployment rates, but some people are catching on.

We are in GD2.

Mon, 07/07/2014 - 20:14 | 4933698 SameAsItEverWas
SameAsItEverWas's picture

"Nobody ever went broke underestimating the intelligence of the American people"  W.C. Fields

And Mark Twain observed that it's very easy to fool a man but once you do, it's practically impossible to convince him that he's been fooled.

Same old story.  The vast majority of people have never had an origina thought, and have no idea what's the difference between knowledge and belief.

The reason hardly anyone realizes that everything is a huge lie was explained very well by Harry Elmer Barnes, which is exactly why you've never heard of him. 

How many other great minds have had their scholarly works erased from our university libraries by banishing them to the ghetto of fringe writers specializing in kooks, such as Colin Wilson, whose books sit right next to Barnes' 1935 classic textbook A Survey of Western Civilization, which was the only college textbook ever reviewed on the cover of the Sunday New York Times book review, whatver it was called back then.

In his 1926 History and Social Intelligence, recently available online in free PDF and audiobook Barnes explains the whys and hows of public stupidity, which is why that book intended for scholars has a somewhat facetious title.

Am I the only one here who has a collection of Barnes' books?

Bernays has been mentioned as another great thinker who was as they say ahead of his time and therefore ignored.  Who else do you know of, besides me of course?



Mon, 07/07/2014 - 21:04 | 4933916 bunnyswanson
bunnyswanson's picture

Story of Civilization by Will Durant for a more compassionate look at "the people."  It isn't the people who corrupt their government, it is big money whereever it is found, buying politicians to change laws and place the burden of taxes on the people at the bottom of the pyramid.


Taxes.  It is about who pays the taxes.  And who votes.  Stupid and easily amused people rarely vote.  Keeping the masses oppressed through ignorance and poverty has been used throughout history to prevent them from becoming powerful through knowledge.

Tue, 07/08/2014 - 09:57 | 4935111 potato
potato's picture

Give your kids the Story of Civilization. It is well-written, interesting, and most importantly, will teach them to write better English than anyone they know.

Mon, 07/07/2014 - 22:21 | 4934141 Xanadu_doo
Xanadu_doo's picture

Holy shit.

This is 1984.

Tue, 07/08/2014 - 03:42 | 4934592 tumblemore
tumblemore's picture

for real

Tue, 07/08/2014 - 03:43 | 4934593 tumblemore
tumblemore's picture

PCR is great at explaining complicated things in a simple way.

Tue, 07/08/2014 - 07:09 | 4934709 Chuck Knoblauch
Chuck Knoblauch's picture

Killing the dollar is the only economic policy that's working.

It is the only economic policy they have that matters.

Everything else is smoke and mirrors.

They want a global currency.

Devaluation is intentional.

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