I wrote a controversial post about the value of small businesses to economic job creation. This follow-up post cites the most recent job numbers which came out a little over a week ago.
Analysts said it showed encouraging data both on the top line numbers and when you dig deeper into the numbers. So this wasn’t just some surface level blips in new jobs created.
But as good as they were, with the massive overhang of unemployment and under employment, it’d take double or triple these gains every month for well over a year to make any meaningful dent in the unemployment rate.
While the government reports their main number at 8.3% unemployment the real number when you include those “too discouraged” to look for work is closer to 16%.
And the real over all unemployment when you consider:
* recent college graduates
* those looking for work
* those on unemployment benefits
* those so discouraged there out of the work force
* those who are underemployed
This real rate is up around 22% to 23% as reported by shadow stats. http://www.shadowstats.com/article/no-411-december-employment-and-unemployment
Here’s more from the CNBC story:
The report cited 95,000 jobs created by businesses with under $50 million in revenue; an additional 72,000 jobs came from medium-sized businesses with revenues from $51 million to $499 million. Just 3,000 jobs were created by large companies in January.
While the numbers continue to trend up, Prakken says the U.S. is not out of the woods yet on unemployment. “We need monthly gains twice as big as this, for months on end, to climb out of the employment hole we are in,” he said. “I’m encouraged, but would like to see more.”
If the government reported statistics the honest way like they were doing back in the 20s and 30s then their numbers would match up with the reality of what you and I are seeing on the ground every day.