Unemployment Rate Falls; Number of Unemployed Stays the Same

If it looks like there’s something weird in today’s unemployment announcement, that’s because there is. While the U-3 unemployment rate has declined slightly, to 7.7 percent, that doesn’t seem to reflect an increase in the number of Americans who are actually working.

In fact, labor force participation, the more important statistic for American workforce measurements, is down slightly. The unemployment rate looks better because it’s being measured against a smaller denominator. At Eagle Daily Investor, which is owned by the parent company of Human Events, Paul Dykewicz explains why it’s important to look beyond the headline statistic:

” . . . in November, 2.5 million persons were “marginally attached” to the labor force, essentially unchanged from a year earlier. The data, which are not seasonally adjusted, reflect individuals who the federal agency described as not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. However, those people were not counted as unemployed because they had not searched for work in the four weeks preceding the survey, the Bureau of Labor Statistics explained.”

Read full story HERE.