“Unemployment Rate” Drops as People Drop Out of Workforce.
How many times have we written about this? Too many to capture them all.
The Obama economy has created a perverse distortion of the “Unemployment Rate” because that widely-reported rate represents the percentage of the total workforce actively seeking employment but not able to find employment.
The more people who give up hope, and stop seeking employment, has the effect of lowering the “unemployment rate.” Here are some of our prior posts:
- Obama jobs “recovery” nears completion as people leave workforce in droves
- Drop out nation
- Workers giving up hope keeps Obama’s reelection hopes alive
- Houdini Economics – Unemployment Rate Drops Sharply But Almost No New Jobs Created
And again today, with a seemingly strong jobs report, the “unemployment rate” dropped, but the number of those dropping out of the workforce also dropped.
The Federalist, which produced the Featured Image, reports:
The Department of Labor announced today that the official unemployment rate fell to 5.5 percent last month, the lowest it’s been since Spring of 2008. Good news, right? Well, kind of. The official unemployment rate masks a problem that’s been plaguing the economy since shortly before the 2009 recession: a continuing decline in the labor force participation rate, which basically measures the percentage of the able-bodied population that’s either working or looking for work. After holding steady at roughly 66 percent from 2004 through late 2008, the labor force participation has been falling, and falling, and falling some more, with no end in sight….
So what does the unemployment rate picture look like if you take into account all of the labor force droputs since the end of the recession in June of 2009? Not pretty. If you take those labor force dropouts into account, the U.S. does not have an unemployment rate of 5.5 percent. Instead, it has a likely unemployment rate of 9.6 percent, and that’s hardly good news.
When it comes to “unemployment rate” reporting, some Presidents are good, others are lucky.
Obama is lucky.DONATE
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