The Daily Reckoning’s Mogambo Guru says the worst part of last week’s employment data is that the 6.1% jobless rate vastly understates true unemployment. The real number is 10.7%. This paints a bleak picture for the US economy.

The latest report of employment showed that the U.S. unemployment rate is now at 6.1%, which is up from 5.7% a month ago. Worse, of the 7 sectors tracked in the report, only in government and education/healthcare is employment rising! Everybody else is shedding jobs! Yikes!

Bob Wood of Kaizen Managed Assets has also looked at the report, and says that although the government announced the news that another 84,000 jobs were lost and that the unemployment rate shot up to 6.1%, he says, “if the truth were known, it was a lot worse than that” because that number was derived after the Bureau of Labor Statistics assumed that 125,000 jobs were created using the birth/death model, “so the real loss of jobs was closer to 200,000. And while the managed unemployment rate was 6.1%, the broader measure that captures workers who can’t find full time work, but whose first choice is to take one today, the unemployment rate is 10.7%.”

And worse of all, since these are government figures, we know that everybody connected with them are lying, and the statistics are too low by half!

The Household Survey of employment also showed job losses, 342,000, so that Mr. Wood is driven to say, “So far this year, the official line from the government is that we’ve lost about 600,000 jobs in 2008″, which is not to mention that almost 700,000 jobs were “assumed to have been created by the BLS using the birth/death con.”

But no matter how you look at it, Andy Sutton of my2centsonline.com says, “the employment situation is bleak, initial claims for unemployment are well over what are generally used to ‘call’ a recession, and even worse, these job losses are causing an increase in individuals raiding retirement savings accounts.”

And how much money is in those retirement accounts? Hahaha! Less than $50,000 on average! How long do you think you can live on what’s left after paying taxes on $50,000 in today’s high-inflation world where the prices rise daily and the dollar loses half its value every few years?

If you are not laughing, then I know that you are not an owner of gold or silver, or even commodities, which thrive in times like these. So, learn to laugh by buying gold, silver and oil, and lots of them! The more, the merrier! Hahaha!

Source: Deployed to the Unemployment Line