Reply #2: More info on magical job creation from the government... [View All]

This is a NY Post article from January 5, 2010

Why the Government Job Figures Don't Add Up

Friday's figure will also be altered by job growth that the Labor Department is pretending has occurred at newly formed companies. The department calls this its birth/death model and by itself this assumption could be more destructive to the US economy than any terrorist attack could ever be.

For instance, in December 2008 the Labor Department assumed that 60,000 jobs were created by infant companies that couldn't be surveyed, and weren't contacted, by its workers. Without that assumption, the job losses that month would have been worse than the almost incomprehensible figure of 681,000 that was publicly announced.

The trouble is, those extra 60,000 jobs don't exist.

In fact, the Labor Department has already said that when it reports its next set of statistics on Feb. 4 it will reduce the number of jobs that it believes existed in this country from April 2007 through March 2008 by around 820,000.



Read more: http://www.nypost.com/p/news/business/why_the_government_job_figures_won_SF8z4SR9LG0at4gQjNj5eO#ixzz0mW4OdDSH