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

Tyler Durden's picture




 

A month ago we asked if the "BLS Forget To Count Thousands Of Energy Job Losses" when as we showed, the BLS reported that only 1,900 jobs were lost in the entire oil and gas extraction space, which was a vast underestimation of what is taking place in reality, when compared to not only corporate layoff announcements, but what Challenger had reported was going on in the shale patch, when it calculated that some 21,300 jobs were lost in January in just the energy sector.

Today we ask again: did the BLS once more forget to add the now tens of thousands of jobs lost in the US energy sector? We ask because the divergence is getting, frankly, ridiculous.

In the February NFP report, the establishment survey reported that just 1.1K jobs were lost in the "Oil and Gas Extraction" industry: this is lower than the downward revised number of 1.8K in January, and adds up to only 2900 jobs lost in 2015.

As a reminder, this is what Challenger said just yesterday:

Once again, the energy sector saw the heaviest job cutting in February, with these firms announcing 16,339 job cuts, due primarily to oil prices.

 

Falling oil prices have been responsible for 39,621 job cuts, to date. That represents 38 percent of all recorded workforce reductions announced in the first two months of 2015. In February, 36 percent of all job cuts (18,299) were blamed on oil prices.

 

“Oil exploration and extraction companies, as well as the companies that supply them, are definitely feeling the impact of the lowest oil prices since 2009. These companies, while reluctant to completely shutter operations, are being forced to trim payrolls to contain costs,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

It even provided a handy chart to understand which is the weakest sector in the US economy right now, which as we said yesterday, "is the one chart that the BLS, if it ignored everything else, should look at."

 

It didn't.

As a result, this is what the job losses in the energy sector look like based on the calculation of the BLS and of Challenger, which actively counts the layoffs, and has no White House-driven agenda to paint a rosier than reality picture.

One wonders: just what is the BLS waiting for to finally admit the real picture in the energy sector (and frankly, just what is the methodology used by the BLS to calculate "jobs" if it is failing so miserably to account for what is clearly happening) and will it serve the steaming surprise pile just after the Fed decides to hike rates some time in the coming months?

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Fri, 03/06/2015 - 10:26 | 5861061 orangegeek
orangegeek's picture

LYING GUMMAMINT FUCKS!!!!!!!!!!!!!!!!!

Fri, 03/06/2015 - 10:27 | 5861064 SickDollar
SickDollar's picture

Seriously Who in the right mind believes these fake numbers ????????

Fri, 03/06/2015 - 10:34 | 5861091 Headbanger
Headbanger's picture

CNBC

But you said "right mind"...

Fri, 03/06/2015 - 10:47 | 5861152 ss123
ss123's picture

The tens of thousands recently layed off from oil, HP, IBM, etc. apparently all instantly got new jobs...

Fri, 03/06/2015 - 10:56 | 5861183 eclectic syncretist
eclectic syncretist's picture

I know I've said it many times before, so I apologize for sounding like a broken record, but these data are being shaped around a policy of strengthening the dollar in order to ensure preservation of reserve currency status.

 

Fri, 03/06/2015 - 11:05 | 5861221 DeadFred
DeadFred's picture

I'm never willinig to assume I understand motivations but there sure have been a lot of mind boggling events and choices that point to a strong dollar. Oil, Ukraine, ISIS, Fed and BLS lies being among them.

Fri, 03/06/2015 - 11:52 | 5861403 Shocker
Shocker's picture

Oil companies / industry has been cutting jobs by the thousands the last few months. Will the trend continue

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

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Fri, 03/06/2015 - 13:27 | 5861811 Never One Roach
Never One Roach's picture
After the fall — Houston energy company stocks take a nosedive

 

http://www.bizjournals.com/houston/print-edition/2015/03/06/after-the-fa...

Fri, 03/06/2015 - 11:10 | 5861235 Winston Churchill
Winston Churchill's picture

Exactly right.Full economic warfare.

Which is why the Fedres will raise rates , to try to kill the RoW econmically, hoping the US is

the only country left standing.

This is about FedRes survival.No reserve currency status, no Fed..

Fri, 03/06/2015 - 11:36 | 5861269 Ignatius
Ignatius's picture

"Exactly right. Full economic warfare."

And in other news, gold just took a $20 swan dive.

Me thinks you're quite right.

Fri, 03/06/2015 - 11:23 | 5861292 Ghordius
Ghordius's picture

WC, may I point out that the British Pound once enjoyed the great advantage of being the global reserve currency and that the Bank of England is still there?

actually, even the Central Bank of Zimbabwe is still there. I presume you mean "No reserve currency status, no exorbitant FED power"

Fri, 03/06/2015 - 11:32 | 5861327 Winston Churchill
Winston Churchill's picture

Same thing for a psychopath.

Fri, 03/06/2015 - 11:55 | 5861421 El Vaquero
El Vaquero's picture

There is a key difference between the transition between the British Pound to the USD as a reserve currency and today.  The us, over the past 40 or 50 years has made oil imports an integral part of its economy.  Suburban sprawl, imports from China and other countries and modern agriculture all depend on this.  The US has set itself up for a nasty collapse precisely because it has not allowed much in the way of alternatives to its current way of life.

Fri, 03/06/2015 - 12:03 | 5861448 Winston Churchill
Winston Churchill's picture

The collapse was also shrouded by wartime rationing in the UK.

Some items were still rationed until 1950.

Nobody truly remembered what pre rationing days were like.

Ater 2 ounces of margarine per month, anything feels good.

Fri, 03/06/2015 - 12:11 | 5861487 El Vaquero
El Vaquero's picture

When the time comes in the US, I expect that rationing will feel good compared to what the control freaks in charge will try to do.  The UK was lucky in that it had its offspring to hand the torch to, and had it gotten really bad, I'm sure we would have shipped food and goods over there.  We have no such backstop.

 

"You didn't grow that, it's ours."

Fri, 03/06/2015 - 12:24 | 5861543 YHC-FTSE
YHC-FTSE's picture

The institution may be there, but remember that it went through a couple of incarnations during and after the pound's reserve status. The bank was privately owned from 1694 until 1946 when it was nationalized, leaving the sole ownership of the money printed in the people's hands. On paper it still is a national bank, but somehow owned by the Treasury Solicitor's dept which is a corporation sole. Add the mystery of a wholly owned subsidiary tacked onto the BOE in 1977 called the Bank of England Nominees Ltd which is protected by the Official Secrets Act and your guess is as good as mine about just who the hell owns and controls the BOE. My guess is that it is back in private hands outside government control, just like the Federal Reserve.

In conclusion, the name may stay the same, but the actors involved and more importantly the ownership of the nation's currency is the most pertinent factor when we are referring to central banks. There is a world of difference between a national bank and a private central bank - the former is in theory answerable to the people of the nation, the latter is not. The former does not charge interest for the privilege of printing the nation's own money, the latter lends it to the people at interest like leeches for literally doing nothing but sitting around with their fingers pressed on the print button.

Fri, 03/06/2015 - 12:32 | 5861585 Ghordius
Ghordius's picture

I beg to differ. imho, it's highly visible that whenever the Chancellor tells the BoE to jump, the only question he gets from Threadneedle Street is "How high?"

meaning that the Bank of England is a national bank. the key question, dear YHC-FTSE, in all things British, is the amount of oversight that Westminster has (or takes itself to have) on HM's ministers

Fri, 03/06/2015 - 12:47 | 5861651 Winston Churchill
Winston Churchill's picture

That depends on which Public school you went to Ghordo.

 

Fri, 03/06/2015 - 12:51 | 5861661 YHC-FTSE
YHC-FTSE's picture

Hey mate. :) You won't get any arguments from me, after all it was a guess based on obscure evidence on Tsol and BOEN Ltd. I thought the same as you while Mervyn King was the governor and I am hoping you're right, while at the same time dubious about it since Mark Carney, a Goldman Sach alumni was appointed to the post.

Considering we have a Goldman Sachs man in control with a Chancellor who is a cokehead being advised on economics by crackheads (Douglas McWilliams - You just can't make this up!), I have a feeling the BOE is usurped.

Fri, 03/06/2015 - 12:45 | 5861636 angel_of_joy
angel_of_joy's picture

... the Bank of England is still there...

The Bank of England is still there. However, the British Empire is most definitely not.

Fri, 03/06/2015 - 15:05 | 5862243 Ignatius
Ignatius's picture

The British Empire in large part just changed home address.

Sun, 03/08/2015 - 00:31 | 5866213 angel_of_joy
angel_of_joy's picture

Doubtful. The new "owners" seem much more inept than the Brits ever managed to be...

Fri, 03/06/2015 - 11:31 | 5861322 glenlloyd
glenlloyd's picture

"I know I've said it many times before, so I apologize for sounding like a broken record, but these data are being shaped around a policy of strengthening the dollar in order to ensure preservation of reserve currency status.

I don't believe for one minute they care about the USD, especially when the administration told Kyle Bass that they were going to kill the dollar if they had to.

Why now would they change their minds and start to care? They've never cared before, Bernanke treated the dollar like toilet paper.

Fri, 03/06/2015 - 11:57 | 5861425 El Vaquero
El Vaquero's picture

Why, for one second, do you think that the Obama administration understands the consequences of its actions?

Fri, 03/06/2015 - 11:58 | 5861432 HopefulCynical
HopefulCynical's picture

Don't apologise. While I've been an occasional visitor to ZH before, I've only recently put it on my daily flight plan. And that's an interesting idea. It does make a lot of sense; the banksters will stop at nothing to keep their fake wealth for free creation engine going.

Fri, 03/06/2015 - 12:48 | 5861629 Grimaldus
Grimaldus's picture

Yes, big government progressive criminal (Corzine anyone?) types would lie to keep the totally illegal strip mining theft of middle class paychecks going.

One thing for sure, the BLS, Treasury, Federal Reserve, Congress and Obama regime are NOT full of constitutional conservatives. Progressives OWN this crime.

It takes big government progressives to murder and steal. It is what they do. Progressive=Criminal. MOAR GOVERNMENT--FORWARD! Obamatron assclown drones keep voting them in but should not complain when the stupid, it burns.

Grimaldus

 

 

Fri, 03/06/2015 - 12:54 | 5861684 HopefulCynical
HopefulCynical's picture

Don't apologize. While I've been an occasional ZH visitor for years, I've only recently put it on my daily flight plan. So I've never heard you say that, and in makes sense. The banksters will stop at nothing to keep their fake wealth for free scam going.

Fri, 03/06/2015 - 10:59 | 5861193 Stuck on Zero
Stuck on Zero's picture

The energy workers who were fired got new jobs - pounding sand.

Fri, 03/06/2015 - 13:31 | 5861834 Never One Roach
Never One Roach's picture

As United Steelworkers union members finish their fifth week of strikes in Houston, a march has been scheduled March 6 in front of the headquarters of Shell Oil Co., Motiva Enterprises and LyondellBasell Industries (NYSE: LYB).

 

http://www.bizjournals.com/houston/morning_call/2015/03/steelworkers-to-...

Fri, 03/06/2015 - 11:42 | 5861366 bmr22
bmr22's picture

Yup slinging coffee or burgers or stocking shirts at the sprawl mart store

Fri, 03/06/2015 - 10:49 | 5861158 Buckaroo Banzai
Buckaroo Banzai's picture

Alcohol is a potent energy source.

Bartenders and waiters are key participants in the delivery of this important fuel.

Hiring of bartenders and waiters is at an all-time high.

Therefore, Energy industry hiring is UP!

Q.E.D.

Fri, 03/06/2015 - 11:01 | 5861206 Miffed Microbio...
Miffed Microbiologist's picture

And interestingly enough the manufacturing of alcohol, a natural product my microbe friends happily do for just a carbohydrate source, is regulated and taxed by the government. Just a coincidence I guess.

Miffed

Fri, 03/06/2015 - 11:59 | 5861435 El Vaquero
El Vaquero's picture

You know why you aren't allowed to distill your own spirits in your back yard?  Taxes.  Not because you might make a still that will blow up your neighbor, but taxes.  Look up the licensing requirements for distilling, and it becomes clear that what you have to do is necessary for them to tax the production of alcohol. 

Fri, 03/06/2015 - 12:16 | 5861508 KingGenius
KingGenius's picture

Yep, same goes for Marijuana. 

They want it legal for Rx, but not as a regular plant. Denver pays taxes on its dispensaries, but there is alot that goes untaxed from homegrowers.

Hemp could bring US agriculture jobs back-textiles all kinds of uses. The South wanted to be an agrarian society, North wanted industrial society in the civil war. They just say it was about slavery to make ppl feel better. Now we are all slaves to taxation-even the "liberated" women. You're free to pay taxes ladies!

Fri, 03/06/2015 - 12:23 | 5861538 El Vaquero
El Vaquero's picture

Marijuana prohibition is a make-work program.  Some sniveling bureaucrat and his cronies were going to lose their jobs at the end of prohibition, so they demonized it and convinced congress through emotional arguments that it should be banned, and over the next few decades, the laws became more draconian.  Look up Harry J. Anslinger.

 

It's still a make-work program today!

Fri, 03/06/2015 - 12:46 | 5861644 KingGenius
KingGenius's picture

Damn right. Hemp is 20 times more strong than cotton. Can be used for biodiesel, food, livestock, paper, even fucking diapers. We have great soil for it. Or lets just rely on Saudi oil and plastic for another 50 years. 

Fri, 03/06/2015 - 10:40 | 5861118 pods
pods's picture

This is what always happens when things go sideways.  The calculations always have conditions as to why the values are accurate.

This does nothing for tail events like oil dropping 50% or the FED goosing the money supply.

Basically, these numbers are worthless in times of great flux.

Like most government statistics, they are best used by government to pat government on the back for doing a swell job of being government.

If a meteor hit the USA tomorrow and killed everyone, the economy would still create jobs next month.

pods

Fri, 03/06/2015 - 10:45 | 5861138 new game
new game's picture

hammer this bitch, bitchez, ha...

Fri, 03/06/2015 - 10:55 | 5861175 Arnold
Arnold's picture

The meteor would have to hit one small spot. It is unlikely that there is an alternative production facility.

U.S. Bureau of Labor Statistics | Postal Square Building, 2 Massachusetts Avenue, NE Washington, DC 20212-0001

Fri, 03/06/2015 - 11:14 | 5861250 Leveraged Algorithm
Leveraged Algorithm's picture

New Game - you add nothing to the conversation - find another blog.

Fri, 03/06/2015 - 12:04 | 5861452 El Vaquero
El Vaquero's picture

The very definitions they use for their statistics are often complete BS in all but the best of times.  If they're manipulating those, you know things are really fucking bad.  U3 = (Labor Force - Employed)/ Labor Force.  See how many ways you can change those numbers to get that to drop, then ask yourself why they would need to manipulate that in the first place. 

Fri, 03/06/2015 - 12:20 | 5861524 KingGenius
KingGenius's picture

Ppl leave unemployment to become underemplyed. You can work 8 hours a week and are considered employed by stats. It is the same yes or no check mark for a 40 hour work week. A win in Washington's book.

Fri, 03/06/2015 - 13:38 | 5861871 HopefulCynical
HopefulCynical's picture

If a meteor hit the USA tomorrow and killed everyone, the economy would still create jobs next month.

Shhhhhh! Don't give Krugman any ideas. (You know damn well that joker at least lurks here.) Do you know how many windows a metor like that would break? We're talking CENTURIES of Keynesian ecstacy, brutha man.

Fri, 03/06/2015 - 11:18 | 5861275 Hohum
Hohum's picture

No one is in his right mind.

Fri, 03/06/2015 - 11:46 | 5861386 drendebe10
drendebe10's picture

Anyone who believes ANYTHING the gubmnt says or does is a brainstem. It is a malignant aggressive cancerous melanoma insinuating itself in all citizens & sucking their life juices dry. 

Fri, 03/06/2015 - 10:42 | 5861128 Creepy A. Cracker
Creepy A. Cracker's picture

"I forgot..."  Steve Martin - Multiple ancient Saturday Night Live TV shows. 

And the federal gubmint, multiple times daily.

Fri, 03/06/2015 - 10:52 | 5861170 Lordflin
Lordflin's picture

Global economy contracting across the board... I don't know if this was predicted by the global warming model, or expected as part of the ongoing recovery... I get confused by all of the information available sometimes....

Fri, 03/06/2015 - 11:34 | 5861332 Hal n back
Hal n back's picture

get it through your minds--our govt is desperate-economy is falling apart and they cannot say that

Fri, 03/06/2015 - 13:24 | 5861800 auntiesocial
Fri, 03/06/2015 - 10:26 | 5861062 SheepDog-One
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Must......Pump.....Stawks....

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