Last month the economy only added 74,000 jobs, failing to meet expectations of 198,000. But like magic the official unemployment rate fell to 6.7%. Great news, right? Well, no, not exactly.
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The Labor Department says the unemployment rate fell from 7 percent in November to 6.7 percent, the lowest level since October 2008. But the drop occurred partly because more Americans stopped looking for jobs. The government counts people as unemployed only if they are actively searching for work.
How bad is it? The number of people not in the labor force reached another new high.
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The good news: the unemployment rate plunged to 6.7% from 7.0%… For all the wrong reasons – the number of people not in the labor force rose to a record 91,808,000.
I just heard that the labor participation rate is the lowest it’s been in 36 years. Welcome back, Carter.
But it’s okay, they’re just blaming it on the weather. It couldn’t have anything to do with all of the horrible policies coming out of Washington, DC or the Federal Reserve.
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As a reason for the plunge the BLS says there was a major weather effect seen on the forced part-time series, and notes the decline in healthcare which is rare and part of the sector slowing. Thank you Obamacare. (Read More)
Oh well, nothing a few Promise Zones won’t take care of.