When the jobs report came out the first week of October 2012 reporting a drop from 8.1 to 7.8%, many people thought it was bogus, in fact Jack Welch believed the report was bogus and it launched a major war between the former GE CEO and Time Warner (Fortune,
CNN, Money) who went out of their way to dispute Welch’s claim but went
after him personally Fortune.com ran a story detailing “Welch’s record as a job destroyer”
resigned from Time Warner and wrote an Op-Ed in the WSJ explaining his
problem with the unemployment numbers and criticizing the sometimes
vicious attacks he has received since his tweet.
According a just released story by the NY Post, Jack Welch was right, Time Warner was wrong, and the Obama administration lied.
According to the report that surprising .3% drop was based on manipulated numbers, and the Census Bureau, which does the unemployment survey, knew it.
And a knowledgeable source says the deception went beyond that one employee — that it escalated at the time President Obama was seeking reelection in 2012 and continues today.
“He’s not the only one,” said the source, who asked to remain anonymous for now but is willing to talk with the Labor Department and Congress if asked.
The Census employee caught faking the results is Julius Buckmon, according to confidential Census documents obtained by The Post. Buckmon told me in an interview this past weekend that he was told to make up information by higher-ups at Census.
Ironically, it was Labor’s demanding standards that left the door open to manipulation.
Labor requires Census to achieve a 90 percent success rate on its interviews — meaning it needed to reach 9 out of 10 households targeted and report back on their jobs status.
Census currently has six regions from which surveys are conducted. The New York and Philadelphia regions, I’m told, had been coming up short of the 90 percent.
So Philadelphia made up the interviews it needed.
“It was a phone conversation — I forget the exact words — but it was, ‘Go ahead and fabricate it’ to make it what it was,” Buckmon told me.
Buckmon, it turns out, was a very ambitious employee. He conducted three times as many household interviews as his peers, my source said.
By making up survey results — and, essentially, creating people out of thin air and giving them jobs — Buckmon’s actions could have lowered the jobless rate.
Buckmon said he filled out surveys for people he couldn’t reach by phone or who didn’t answer their doors.
But, Buckmon says, he was never told how to answer the questions about whether these nonexistent people were employed or not, looking for work, or have given up..
Census never publicly disclosed the the numbers were bogus, nor did they tell the Dept. of Labor.
Census appears to have looked into only a handful of instances of falsification by Buckmon, although more than a dozen instances were reported, according to internal documents.
In one document from the probe, Program Coordinator Joal Crosby was ask in 2010, “Why was the suspected … possible data falsification on all (underscored) other survey work for which data falsification was suspected not investigated by the region?”
On one document seen by The Post, Crosby hand-wrote the answer: “Unable to determine why an investigation was not done for CPS,” or the Current Population Survey — the official name for the unemployment report.
Looks like this is another job for Chairman Issa.