>Real Jobless Rate Is 11.4% With Realistic Labor Force Participation Rate
Tyler Durden’s picture
Submitted by Tyler Durden on 01/06/2012 10:23 -0500
One does not need to be a rocket scientist to grasp the fudging the BLS has been doing every month for years now in order to bring the unemployment rate lower: the BLS constantly lowers the labor force participation rate as more and more people “drop out” of the labor force for one reason or another. While there is some floating speculation that this is due to early retirement, this is completely counter factual when one also considers the overall rise in the general civilian non institutional population. In order to back out this fudge we are redoing an analysis we did first back in August 2010, which shows what the real unemployment rate would be using a realistic labor force participation rate. To get that we used the average rate since 1980, or ever since the great moderation began.
https://www.zerohedge.com/news/real-jobless-rate-114-realistic-labor-force-participation-rate