This morning when I heard the news that the official unemployment rate dropped to 8.3%, I wondered how many people dropped out of the labor market. I wasn’t expecting it to be a whopping 1.2 million. Yes, that’s right, 1.2 million.
Zero Hedge has the details [emphasis original]:
A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that’s not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation.
Be sure to read the whole thing, and check out the disturbing charts. Remember it when Obama comes out and tells us his policies are helping the economy.