The new unemployment numbers are out and the good news is that unemployment has dropped from 10.2 percent to 10 percent. First reaction to these numbers is positive but in light of the fraudulent job creation numbers, it would be prudent and wise to investigate these numbers further.
Statistical data like unemployment numbers is only valuable when compared with another set of comparable numbers. That is why when these numbers are reported they are always compared with the previous month. However, for the numbers to truly be comparable, the method of collecting the data needs to be consistent. Temporary events that cause a momentary increase or decrease in the data call for adjustment of the data in order to make the numbers comparable.
The greatest period of economic activity each year occurs during the Christmas Holiday. With this increased economic activity, companies hire temporary help to handle the extra workload. If the Government fails to adjust unemployment numbers to account for these temporary events, the numbers for November and December each year would always be better than those of the rest of the year.
The administration attributed the unemployment decrease to the addition of temporary jobs. Unless these jobs are going to become permanent, they represent a temporary event and the figures should be adjusted. It will be interesting to see what happens in January but wait; we will be adding 10,000 temporary census jobs then. However, these census jobs are also only temporary and will end in six months. So, Mr. President, what are you planning to do after these temporary jobs end?
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