More Phantom Jobs Created–All In The Wrong Places
Education is not the answer
07, 2014 "ICH"
Last April I
saw a report that 83% of May’s college graduates did
not have a job. I remarked that in my day most of us
had 2 or 3 job or graduate school offers before we
graduated. The latest payroll jobs report issued on
June 6 proves that the April report was true.
schooled in part by John Williams’ very precise
reports on Shadowstats.com, is that on average about
half of the new jobs each month are phantom jobs
created by the birth-death model and inappropriate
seasonal adjustments. So, I figured that the 217,000
jobs claimed for May are more like 108,000. Then I
read John Williams’ report on the May jobs number:
“Monthly payroll gains overstated by 200,000 plus
words, there were zero new jobs in May.
Just as the
US government can turn an inconsequential Iraq,
Afghanistan, Libya, and Syria into dangerous threats
against “the world’s only superpower,” the US
government can turn zero jobs growth into 217,000
jobs. It is easy when you have a prostitute media
and a gullible public, both of which Washington most
take the government data at face value.
consider the news report that finally as of May 2014
as many Americans had jobs
as had jobs in January 2008. That might seem like
good news until you take into account that since
January 2008 the US has experienced 6.5 years of
population growth. Economists seem to have settled
on population growth adding 129,000 people to the
work force each month. That comes to 10,000,000
people. Where are their jobs? The “jobs recovery”
doesn’t provide for the 10 millions who have come of
working age since January 2008.
conclude from this that the official 6.3 percent
unemployment rate is nonsense. The unemployment rate
is in the neighborhood of 23 percent as John
Williams has established.
Just as the
US government claims, falsely, that Russia invaded
Ukraine and annexed Crimea, that Saddam Hussein had
weapons of mass destruction, that Assad used
chemical weapons on Syrians, and so forth and so on,
the 6.3 percent unemployment rate is just another
consider where the claimed 217,000 May jobs are.
Hardly any of these claimed jobs are jobs in which
university graduates begin their careers. The jobs
are in wholesale trade, retail clerks,
transportation and warehousing, employment services
and temporary help, waitresses and bartenders, and
health care and social assistance. In the later
category, ambulatory health care services and social
assistance account for the majority of jobs.
graduates have jobs, they are not the jobs for which
they studied. On March 31, CNN Money reported that
260,000 college graduates were employed at or below
the federal minimum wage of $7.25 per hour.
many years that I have been reporting on the jobs
statistics, there has been scant sign of any jobs
for college graduates. Considering that there are at
least 3,100 colleges and universities in the US, the
May graduating class must number in the hundreds of
thousands. Looking at the May jobs statistics, those
graduating from law school face a dismal situation
as employment of lawyers dropped by 700. There were
jobs for only 4,100 accountants and bookkeepers.
There were 4,500 jobs for architects and engineers,
a number that includes secretaries and office
managers. There were 1,800 management jobs. State
government education jobs declined by 5,300 and
local government education jobs declined by 6,600
jobs. So where did the education majors find
How is the
second quarter going to come roaring back, as the
financial media assures us it will, when the jobs
report is so discouraging? How much longer will
Washington be able to hide the fact that the US
economy is sinking?
If you read
all the bullshit that the American media and
educational establishment puts out, “education is
the answer.” Apparently not. Education is the way to
become deeply in debt and work for $7.25 per hour,
if you are lucky to escape unemployment.
a Great Big Lie. There is no truth in what we are
told. The entire country, along with that part of
the world under Washington’s thumb, is run for about
six private interest groups. The rest of us are
Paul Craig Roberts was Assistant Secretary of the
Treasury for Economic Policy and associate editor of
the Wall Street Journal. He was columnist for
Business Week, Scripps Howard News Service, and
Creators Syndicate. He has had many university
appointments. His internet columns have attracted a
worldwide following. Roberts' latest books are
The Failure of Laissez Faire Capitalism and Economic
Dissolution of the West and
How America Was Lost.