The Gigantic Conspiracy To Inflate Jobs Numbers In America

After that strong jobs report on Friday, radio host Rush Limbaugh blasted the “corrupt” data, which he claimed were a total lie.

From Newsmax:

The jobless rate reported today is “corrupt as it can be” because President Barack Obama’s administration has decreased the size of the workforce, Rush Limbaugh said on his radio show.

According to the Department of labour, employers added almost a quarter of a million jobs in January. According to Limbaugh, it eliminated 2 ½ million positions.

“The number of jobs not available to be filled exploded by an unprecedented, record number of 1.2 million,” he said. “That’s not a typo. That’s part of this 2 ½ million fewer jobs. It is corrupt as it can be.”

There’s just one problem for Rush’s stance.

If the Department of labour numbers were a lie, then a lot of other organisations have to be lying as well, since so much data is confirming the strong jobs news.

In other words, you’d need to have a conspiracy of epic proportions.

How big?

Well to start, the BLS needs to be in a conspiracy with the private payrolls company ADP, because ADP comes out with its own data, and it pretty much lines up perfectly with BLS.

chart

Photo: FRED

Also, as we just pointed out, the BLS has to be in a conspiracy with the Institute For Supply Chain Management, since their surveys of employer hiring intentions match up perfectly with the BLS.

chart

OK, so now the conspiracy is the Department of labour + ADP + The Institute Of Supply Chain Management.

But wait, there’s more!

You also need to add in the car companies.

Because remember, car sales line up nicely with jobs numbers. (Note that the car data, the red line hasn’t been updated yet, but we know it jumped again, as sales surged 11% from last year).

It’s also worth noting that the car sales are self reported by the various automakers, like Ford, GM, Honda, Toyota, Hyundai, Chrysler, and so on.

chart

Photo: FRED

So if there’s a conspiracy to lie about the data on behalf of Obama, it involves, the Department of labour, ADP, the Institute for Supply Chain Management, GM, Ford, Chrysler, Toyota, Honda, Mercedes, Kia, Hyundai, and so on.

It’s possible, but… the real answer is that Rush is probably wrong.

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