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Follow The Leader – Government Layoffs

admin on 01 27, 2011

In order to stay ahead of the curve, you have to think ahead of the curve. More layoffs are coming to states who are trying to trim their balance sheet. It is only a matter of time before we have actual depression like unemployment. Are we there already, but just being misled?

I read some interesting statistics the other day on unemployment. It is all how the numbers are fed to us. We are force fed a low number of people that are looking for work, but we don’t hear about the people that are not looking for work, who have given up, or who are working a part time job to make ends meet. Here are some interesting stats that you should know!

The total civilian labor force: Americans 16 years and older who are not in a institution -criminal, mental, or other types of facilities- or an active military duty.

• Total Labor Force 238.9 million.
• Employed: 139 million people
• Unemployed: 14 million people

• Part time employed for economic reasons: 8.931 million people: people who want a full-time job but can’t get one.
• Part time employed for non-economic reasons: 18.184 million people: School, training, retirement or Social Security limits on earnings, but also childcare problems and family or personal obligations.
• “Not In Labor Force”: 85.2 Million people.BLS:“Not in the labor force (NILF). A person who did not work last week, was not temporarily absent from a job, did not actively look for work in the previous 4 weeks, or looked but was unavailable for work during the reference week; in other words, a person who was neither employed nor unemployed.”
• 112 million people in America are either unemployed, underemployed or “Not in the labor force”. This represents 46% of working age Americans.

Add  the unemployed of 14 million with the 112 Million people above who are ( underemployed, working part time or “Not in the labor force”) , you get 126 Million people

That represents 53% of working age Americans.

Which means….

Only 47% of working age Americans have full time jobs.

Compare this to the complete BS “official” unemployment rate of 9.4%.

How many more layoffs can this country handle?

This link from yahoo tells of State financial troubles and potential layoffs that are coming.

http://finance.yahoo.com/news/State-workers-to-suffer-cnnm-2123391290.html?x=0&sec=topStories&pos=4&asset=&ccode=

If the largest employer in our country, our Government, is starting layoffs because they have too much debt because they couldn’t afford these workers in the first place(deferred pensions) then what does that say for the outlook of our country.  Only 47% of our workforce is working full time.  This has to hit home at some point.  States laying off 5-10% of their workforce will crush this country.

The Fed printing money can only save the stock market for so long.  Day trading algorithms are driving up the stock market combined with free money from the Fed (POMO).  Who is going to catch the falling knife when they turn these machines in the other direction?  If you are still holding your long term portfolio at that point then it is no one’s fault except yours.