Did The BLS Forget To Count Thousands Of Energy Job Losses?

Tyler Durden's picture

One of the convenient things about the sharp plunge in crude and its subsequent and acute impact on energy company staffing levels, is that due to its concentrated nature one can keep track of precisely how many layoffs corporations in the energy sector announced in January. And as Bloomberg helpfully tracks, there were at least (and surely many more that were not unaccounted for) 18,000 terminations by US companies in the high-paying energy sector (and thousands more by foreign companies who have laid of US workers which are not shown in this total).

According to third-party tracker Challenger, Gray & Christmas, the number is roughly the same with 21,322 job cuts in January in the energy space attributed to the tumble in oil prices. Texas alone accounted for 19,833 of these layoffs.

“We may see oil-related job cuts extend well beyond those industries involved with exploration and extraction,” said John A. Challenger, CEO of the outplacement firm. He warned the retail, construction and entertainment sectors in regions that have benefited from the oil boom could face challenges.

The BLS report? Well, according to the January payrolls report, the number of Oil and Gas Extraction workers declined to 199.5K in January from 201.4K in December, a virtually non-exstant drop of 1,900 workers (and even the not seasonally adjusted, raw data shows a tiny drop of just 3.1K workers).

Visually, the outlier is as follows:

So our question is: did the BLS choose to ignore these thousands of jobs losses, or did it simply forget?

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LetThemEatRand's picture

"Forgot" implies inadvertence.

SickDollar's picture

who in the right mind believes in theses numbers !!!!!!!

 

Cognitive Dissonance's picture

Those who control the narrative control the mass mind.

Gaius Frakkin' Baltar's picture

It's obvious isn't it? People who understand math are conspiracy theorists.

Luckhasit's picture

Isaac Newton is a conspiracy theorist.

Dubaibanker's picture

It was a rounding error by BLS.....

SumTing Wong's picture

It was more a decimal point error...1 point 8, eighteen, whatever...

Manthong's picture

I don’t understand the big deal..

I have been drilling all along and there has been plenty of lube.

 

Shocker's picture

The job market is spent

Layoff / Closing List: http://www.dailyjobcuts.com

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deadelephant's picture

Most of the announced job losses take effect over the next 6-12 months.  Gonna take 3-4 months before these start showing up in labor statistics.  6-9 months down the road foreclosures in Texas will start to boom.  Construction jobs in residential, commercial, and industrial will all fall off a cliff.  The hit will come, there is just a lag time.

A L I E N's picture

Those job losses have been noted and will be accounted for in the revisions where few will notice..

SuperRay's picture

I thought it went he who controls the spice controls the universe...

"Mass mind" - an oxymoron

Squid-puppets a-go-go's picture

you are all unamericanly cynical. In seasonally adjusted terms, they not only kept their jobs but got a raise - such a nice raise that they were able to hire subcontractors of their own

El Vaquero's picture

If anything, Newton was a conspirator.  He took great pleasure in punishing people for coin clipping and he snubbed the fuck out Leibniz.  A very intelligent man, but he was an asshole.

SWRichmond's picture

The only number that really matters is "payroll tax receipts".

pelican's picture

Everything is awesome when you are part of the team!

 

Just thinking about my home state and all the jobs and corporations that went away leaving burger king jobs....

 

The country is fucked and everyone in except DC and NY knows it.

gmrpeabody's picture

Nobody in California, Oregon, or Washington gets it...

Hitlery_4_Dictator's picture

Haters and going to hate. THe FED has mangined to jump start this economy. And someone asked the if things are so good then why is the interest at zero? My Answer = who cares....the FED has convinved the world that we are great and they will accept our money printing and zero interest rates.  Enjoy this ride, it's awesome. Fed is winning!

Creepy A. Cracker's picture

BLS stole the line from Steve Martin in ancient Saturday Night Live shows:

"I forgot..."

BraveSirRobin's picture

So, congress didn't know what 1 + 1 equaled, so they created a commission to find out. The commission couldn't figure it out either, but they were able to identify some people who worked with numbers all the time would possibly tell them. So they set up a hearing and invited a mathematician, and economist, and an accountant.

The mathematician was the first witness and and the chairman asked him, "What does 1 + 1 equal?" Bewildered, the mathematician said, "Mr, Chairman, 1 + 1 equals 2." The chairman then asked, "Always?" And the mathematician responded, "Yes, always. Each and every time." The chairman thanked him for his testimony, and he was excused.

The second witness was the economist, and the chairman asked him, "What does 1 + 1 equal?" The economist thought for a second and said, "Well, it depends. All other things being equal, and depending upon seasonal factors and variations, and smoothing of outliers, 1 + 1 equals 2, plus or minus." The chairman thanked him for his testimony, and he was excused. 

The third witness was the accountant, and the chairman asked him, "So, what does 1 + 1 equal?" The accountant looked around the room furtively and said, "Well Mr. Chairman, what do you want it to equal." The chairman thanked him, and gave him a $10,000,000 contract to advise his committee staff.

LawsofPhysics's picture

Yes.  People need to research what it meets to "goal seek" or have "targeted outcomes".

 

cue the lego movie music...   ..."everything is awesome..."

El Vaquero's picture

You mean that when you get into a car accident, have a totaled car, broken femur, 4 broken ribs, a collapsed lung, multiple organs bruised, a broken nose, a concussion, yet your iPad went flying out of the car and landed on a soft spot of grass unbroken, so it is a good day, because your iPad beat expectations?  That kind of goal seeking?

Nunyadambizness's picture

Yes!!  Exactly that kind of outcome.  Excellent!

TruthInSunshine's picture

We're producing 3 million, mostly high wage, jobs a year right now this is a massive economic expansion in the U.S. Economy!

Look at the MASSIVE UPWARD REVISIONS!

4.5% GDP growth is here!

This is GREAT NEWS FOR THE MIDDLE CLASS! You will be in a position to get hired at a much higher wage, demand better benefits, more time off, and higher bonuses!

5% to 6% bank account/CD yields for savers are about 12 to 14 months away!

Fox-Scully's picture

A block party of cardboard boxes--sounds good!

SeattleBruce's picture

Thanks for SHOUTING this from the rooftops, as if it ISN'T SHOUTED LOUDLY, many more people will know it's all LIES.  ;)

Gypsy Ramono's picture

Finally someone who understands statistics. Instead of berating the the geniuses at the BLS look at the facts, YES FACTS. With all the foreign IT workers coming in on H1-B visas, (because American's are too dumb and lasy to work on computers) there are millions of job openings at fast food restaurants. The job layoffs in the oil sector is only 'noise' and carefully planned vicious propoganda by terrorists hell bent on destroying the US. 

Trust the BLS!

Ministry of Truth

gmrpeabody's picture

"(because American's are too dumb and lasy to work on computers)"

Dude..., let spell-check work for ya...

Fed-up with being Sick and Tired's picture

It continues to amuse me how many "regular" folks buy into this farce we call BLS data.

NoDebt's picture

We're quibbling over 21,000 jobs when Obama created 14 quadrillion jobs in November alone?  I mean, seriously.  He's fixed the roads, he's lowered the sea level, he's made healthcare universal and easily affordable AND he's created so many good paying middle class jobs we don't have enough people to fill them all.

What more could we ask the Kenyan to do for his adopted (invaded?) country?

LawsofPhysics's picture

MDB is jealous of your post, nice work.

SeattleBruce's picture

Gracious - with all that teleprompter work he's done - whew! - just let him play golf already...poor guy...

divingengineer's picture

I guess it depends on what your definition of is, is. 

 

dexter_morgan's picture

Devotional and graymnzrc. Oh, wait said right mind...........

Leveraged Algorithm's picture

But if I guess the bad number correctly - CNBC will reward me with an autographed condom from Jim Cramer & Kelly use tampon!  That is all that counts....

BraveSirRobin's picture

"who in the right mind believes in theses numbers !!!!!!!"

Yes, it would take belief, indeed, that awith a dash of blind faith.

CH1's picture

Are we taking government figures seriously now?

And if so, WHY?

usednabused's picture

Why exactly! Isn't the corn included in the shit that comes from the beasts ass all traders daily sustenance?

NotApplicable's picture

Because it's fun to observe the blatant plot holes.

JRobby's picture

They were added to the seasonal adjustment factor, then the actual number was discounted by another seasonal adjustment based on weighted averages, adjusted for inflation, poulation gains, productivity factors and weather factors spread over several centuries.

GetZeeGold's picture

 

 

Fossil fuel energy is evil....therefore we don't count those jobs.

divingengineer's picture

Precisely,  better off without them. 

That's labor and talent that could be working in the solar panel industry. 

They'll find their way there, eventually. 

Sudden Debt's picture

They didn't forget.

The people working in the energy sector mostly work with a contractor contract.

Independent contractors.

So it's cheaper to just kick them out if needed.

Sure they make more money but they carry a lot more risk.