John Crudele writes:
There was a job boom in the US economy in April that was as phony as any Hollywood explosion.
The Labor Department announced Friday morning that a healthy 288,000 new jobs were created in April and that the unemployment rate declined by a stellar 0.4 percentage points, to 6.3 percent.
Wall Street had been expecting a gain of 200,000 and the jobless rate to fall to 6.6 percent.
If you read Thursday’s column, you already know that I predicted growth would be better than the Street was anticipating. That’s because the Labor Department adds a load of phantom jobs in April.
The government tries to estimate the number of new companies it thinks sprouted up during the month based on something called the birth/death model. The 288,000 figure included 234,000 of these phantom jobs. ...