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Sonntag, 7. Oktober 2012

The (Un)Employment Statistics

The recently released Unemployment Figures by the Labor Department show a surprising Decline of the Unemployment Rate to 7,8%.  The Résumé represented by these Figures will undoubtedly help President Obama and most Polls confirm this as President Obama is gradually (and rather decisively) pulling ahead of former Governor Romney.

One Factor yet to be put into the Equation is what will be the Effect of the First Presidential Debate during which, according to most Watchers, Mr. Romney outperformed Mr. Obama.  However, historically, Debates, no matter who they are won by, have an uphill Battle in dramatically moving the Electorate; they may enlighten and shed Light on the Candidates' Positions but People do not make up their Minds whom to vote for based on the Debates, except on rare Occasions.

Coming back to the Unemployment Statistics released by the Labor Department on Friday, 6 October, one significant Voice which could be heard expressing Skepticism was that of John F. (Jack) Welch, former Head of GE.


John F. (Jack) Welch
 
Jack Welch, unlike his Successor, Jeffrey Immelt (about whom we have written elsewhere in this Column; see ,,Dancing Elephants'')

http://www.blogger.com/blogger.g?blogID=468652052156108416#editor/target=post;postID=2580542179106125046

was a towering and shaping Leader of General Electric, truly a Leader of ,,Grand'' Proportions like his Predecessor, Reginald H. Jones and those others before both of them.  Jack Welch came out thundering and questioned the Accuracy of the Figures of the Labor Department citing, validly, among other Things that he sees no Evidence in the Economy to support those Figures.  Unfortunately, Mr. Welch went a Step too far and theorized, ,,postulated'' that a Chicago Consipracy of some Sort was behind all this, something reminscent, to his Mind, one supposes, of the good ole' Daly Days.

http://leanforward.msnbc.com/_news/2012/10/05/14248410-welch-i-have-no-evidence-for-jobs-conspiracy-theory-but-i-dont-take-it-back?lite


Reginald H. Jones, former (Legendary) Chairman of General Electric
 
One should, of course, not make such Accusations and Mr. Welch may well regret having sent the ,,Tweet'' that made the Accusation.

However, Secretary of Labor Hilda L. Solis's Protestations to Jack Welch's Criticism notwithstanding, the Department of Labor, under the Obama Administration and before has had less than a Stellar Performance when it comes to the Accuracy of such Statistics.  More frequently than one would like, or should, these Figures have been revised upwards and downwards and sideways and every which Way.  Mr. Welch is correct in stating that the chronically unemployed and the People who have simply given up looking for Work are gradually being excluded from these Unemployment Statistics and that, again, gradually, is giving the Unemplyoment Quotient a gradually different Coloration.

 
Hilda L. Solis, Secretary of Labor

Mr. Welch could have made the further Argument, which he did not that the new Jobless Claim Reprts and the Unemployment Statistics are derived from different and non correlational Data; thusly making both Sets of Figures suspect.

More simply, Mr. Welch could have made the Argument that the Department of Labor, whether it be under Hilda L. Solis or some of her recent Predecssors, can really do a far better Job at coming up with Unemplyoment Statistics which are more accurate, credible, more in Synch with the Jobless Claims and more reflective of what is really going on in the Job Market, Presidential Election or not.

 

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