Tags: Unemployment | Government | Dependency | jobs

Unemployment Data Show Shift to Government Dependency

By    |   Wednesday, 15 Feb 2012 11:13 AM

The percentage of adults working or looking for a job is at its lowest level since 1979. This has led many to question whether or not the reported drop in unemployment is real.

To begin with, the numbers reported are unbiased and are equally likely to be wrong no matter who sits in the White House.

The Bureau of Labor Statistics follows an objective model and isn’t influenced by politics. Economists are relying on models and estimates in a rapidly changing economy. Mistakes can — and do — happen every month.

Digging into the participation rate, the historic average from 1948, when the data first became available, to 1979 was 59.9 percent.

During the past 30 years, the average number of adults in the workforce jumped as high as 65.8 percent. Now, we sit in the middle of those two averages with 63.7 percent of adults working or looking for work.

Millions have left the workforce to go to school or to take advantage of government benefits that pay an average of more than $35,000, according to a recent New York Post article.

It can even be argued that many of those in school are taking advantage of government benefits with grants and loans paying for large portions of their education.

The decrease in the number of people wanting to work began near the same time as the unprecedented increase of government benefits spending.

Economists are doing their best to report unemployment but like many others, they are probably having trouble keeping up with new government benefits programs.

Unemployment data are very likely reporting a significant change in America and showing a country where benefits have replaced work for millions.

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2012-13-15
Wednesday, 15 Feb 2012 11:13 AM
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