Real Clear Politics | Posted on February 3, 2012
CNBC’s Rick Santelli: You know what I said at 8:30 Eastern? We want a million jobs an hour. That’s what we want. What we got looked like a good report. I said, ‘Let’s get the calculator out,’ and I did. And so did a boatload of my sources and big blogs that many people read like Zero Hedge. The labor force participation rate, if you look at non-seasonally adjusted, a fresh low going back to April of ’83. If you look at seasonally adjusted, a fresh low participation rate going back to December of ’81. What does that mean in English? Shrinkage. Shrinkage. 1.2 million people are now not considered unemployed anymore. They just have left the system. So, we need to concentrate on the internals, and eventually we want to watch the fixed income market to see if some of this sets in as people do their ciphering.
Listen, if I talk about a stock that had a great report, but I don’t point out the fact that there was a one-time tax credit that did it, am I doing my viewers a service or a disservice? Listen, when you look at the body counts on the establishment survey, we created jobs. That’s a good thing. There’s my perk. But I’m sorry, if you look at the other side, you look at the household survey, yes, we had this big seasonal adjustment. You can go to the BLS, you can see their economic release, you can see their situation summary. And we can see that ‘not in labor force’ moved from about 86.6 million to 87.8. There’s your 1.2 million. And we do see the asterisk, there’s been an adjustment on population. That’s the way it goes. We make an adjustment. The last 12 months needed to be adjusted. It is what it is.