Dec 7, 2012 Comments Off on Backlash: Economists, Analysts Say New Government Unemployment Report Is Fraudulent Pat Dollard
Excerpted from Yahoo Finance: As much as his fans scream and yell when he walks on water or levitates, most people have a pretty good idea that magician/illusionist Criss Angel is somehow tricking them and not actually defying the laws of physics.
In much the same way, when this morning’s surprisingly strong jobs data came out, professional investors and economists alike knew immediately that something was up. In a month when one of the nation’s most disruptive storms in recent history occurred, for the Bureau of Labor Statistics to report that Hurricane Sandy did not have an impact and the unemployment rate fell to a four-year low of 7.7% and 146,000 new jobs were created, that defies the laws of reason.
“It’s a little hard to believe quite honestly,” says Dan North, chief economist at Euler Hermes, in the attached video. “If there’s any report that deserved caveats and conditions it’s this one.”
And he’s not alone. Peter Kenny from Knight Capital calls the report a ”head scratcher” in a note to clients today, saying he never looks a gift horse in the mouth, but just can’t get comfortable with the numbers. And Andrew Wilkinson, chief economic strategist at Miller, Tabak & Co., who correctly called for a much stronger than expected number yesterday, is already expecting the 20,000 reduction in construction jobs to be short-lived, reminding clients that “we know what follows any disaster.”