John Snow: Galoot
Update: Now I remember where I get my understanding of the definition of the unemployment rate - this post from angrybear (and this post too) tells it all... employment-to-population ratio (below) is a better indicator:
+++++++++++++++++++++++++++++++++++++++++++++++++++++++WaPo link (above) to story about how jobs creation was way below estimates (only 75,000 created). My issue is with that numbskull, outgoing Treasury Sec'y John Snow, who has never know his ear from his elbow makes this statement:
Outgoing Treasury Secretary John Snow said on CNBC that "the number
we've got to focus on" is not the monthly job figure which "jumps around alot," but the falling unemployment rate. It "shows continuing strength in labor markets," he said.
As I've stated before as have others, that the unemployment rate is an estimate based on monthly surveys on whom among us is looking for work; if you take yourself out of the market, then you're not counted in the denominator. Looking at full employment is a much better indicator of how labor is doing in an economic cycle - there are probably others, but sadly I'm not that technical about economic matters...I'm sure somebody has the sabermetric "Win Shares"- job growth equivalent out there. The other thing to look at is compensation rates rising or falling (they been falling since 2001). Did somebody say stagflation again??
posted by jimboses @ 11:43 AM
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