The BLS & a Conspiracy Theory

http://economix.blogs.nytimes.com/2012/10/05/from-jack-welch-a-conspiracy-theory/?emc=eta1

http://economix.blogs.nytimes.com/2012/10/05/explaining-the-big-gain-in-job-getters/?emc=eta1


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"The wise man questions himself, the fool others." (Henri Arnold)
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So Jack Welch has once again shared his unlimited prowess in smelling out a political conspiracy that relates to unemployment. He probably feels he has some expertise in this area since he laid off 200,000 of the 400,000 people working at GE when he took over as CEO in the 80s. His nickname back then was "Neutron John." It's amazing what getting rid of people will do to your "profit-per-employee" ratios.

So, Welch shot out after the positive jobs news: "Unbelievable jobs numbers...these Chicago guys will do anything...can't debate so change numbers."

Fortunately, nobody who knows how those jobs numbers are put together, takes the Welch observation seriously. Frankly, I'm beginning to think that nobody takes most of Welch's observations seriously. It seems that he's part of a long line of retired CEOs who want to continue to be "heard."

Catherine Rampell does an excellent job in her post in "Economix" of both explaining how the "jobs" numbers work and giving us an overall perspective: "The numbers are tremendously volatile, but the reasons are "STATISTICAL" not "POLITICAL." And she goes on to prove it while emphasizing the plight of the 20 to 24 year old age group.

Rampell points out that there are no political appointees running the BLS and that their same systems they always use produced the current numbers/estimates.

Hopefully, the BLS numbers are another positive sign. I would prefer to look at it that way.