When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Saturday, April 7, 2012

Hey, you're not unemployed, you're "not in Labor Force"

"Not in Labor Force" now "off the chart"

CNBC: "Economists polled by Reuters had expected nonfarm employment to increase 203,000 and the unemployment rate to hold at 8.3 percent."

Instead, "U.S. payrolls rose far less than expected in March (Employers added 120,000 jobs last month, the Labor Department said on Friday, the smallest increase since October)" and yet "the unemployment rate fell to a three-year low of 8.2 percent." (source: CNBC).

How could the economy add fewer jobs than expected, and yet the unemployment rate drop? That's easy, those classified "not in labor force" increased to an "all time high."

NFP Big Miss: 120K, Expectations 205K, Unemployment 8.2%, "Not In Labor Force" At New All Time High | ZeroHedge: "The unemployment rate drops to 8.2% for one simple reason: the number of people not in the labor force is back to all time high: 87,897,000."

This is how Obama is getting the unemployment rate to decline:

Now, if we could only get everyone to "drop out of the Labor Force," our unemployment rate would be 0% and all of our problems solved--right?


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects