The more comprehensive U-6 unemployment number, which counts the long-term unemployed, remained fixed at a horrendous 14.7 percent. So how did the U-3 “marquee” rate come down a few tenths of a percentage point?
Well, part of the “thanks” goes to that perennial feature of Obamanomics, the collapsing U.S. workforce. 211,000 people left the workforce entirely over the past month. They no longer count for compiling the U-3 statistic. So, twice as many people stopped looking for jobs as found jobs, and that’s supposed to be good news.
Then we add an upward revision to the job creation numbers for July and August of 86,000 more jobs, which makes September look worse by comparison to August, but it won’t be reported that way. Actually, the trend line over the last three months is pointing down. Fewer jobs were created in each successive month. The job market is getting worse.
And Bloomberg News explains the rest of the “tumble” to 7.8 percent unemployment nirvana: an incredible explosion of part-time work.
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