TheFinancialPhysician.com
Today’s non-farm payroll report revealed that 120,000 jobs were created in November slightly less than the 125,000 most economists expected. The real headline in the report is that the unemployment rate declined to 8.6% from 9.0%.
The reduction in the jobless rate stemmed in large part from a decline in the size of the labor force. Some 315,000 people stopped looking for jobs last month, not exactly the sign of a healthy job market. The Administration surely will be touting this number as a sign that things are improving when they are not. As more and more people run out of unemployment insurance and become “discouraged” the jobless rate will continue to decline making it appear that the Administrations policies are working, just in time for an election year.
Labor Force Participation Rate:
