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Unemployment Report Distortions

08/07/2009 • Chris Martenson

The release of the July unemployment report was filled with a wide array of distortions and inexplicable results (especially from the Birth-Death model), which have undoubtedly resulted in a better-than-warranted reported gain. In this post we'll explore these oddities in some detail Wait, how can you lose jobs and have the rate of unemployment fall? This doesn't make sense, because it is the equivalent of saying, "I spent more than I earned and my savings went up." The key here is understanding the ways in which the government measures unemployment.

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