Saturday, October 6, 2012 – 03:30 p.m.
A highly suspect September unemployment report is now playing into the Presidential election cycle.
The report says the unemployment rate dropped from 8.2% to an astounding 7.8%. The news immediately floored most economists, who are now questioning the household survey the rate is derived from.
With only 114,000 jobs created in September, the 0.3% rate drop should not have happened.
The household survey says that 763,000 people went back to work last month. The figure has a margin of error of +/- 400,000.
The 763,000 statistic is the best monthly performance in 29 years (1983).
The Department of Labor, Bureau of Labor Statistics, is supposed to be a professional, non-political, operation. Now that assertion is called into question with this report.
Interestingly, the real unemployment (U-6) rate remained unchanged at 14.7%, with more than 23 million Americans affected.
The rate takes into account part-time workers and discouraged workers who have quit looking for jobs.
The report comes on the heels of a poor debate performance by President Barack Obama last Wednesday night.