Unemployment in the U.S. unexpectedly dropped in November to a two-year low, while employers added fewer workers than projected and earnings eased, indicating the labor market is making limited progress.
The jobless rate declined to 8.6 percent, the lowest since March 2009, from 9 percent, Labor Department figures showed today in Washington. Payrolls climbed 120,000, with more than half the hiring coming from retailers and temporary help agencies, after a revised 100,000 rise in October. The median estimate in a Bloomberg News survey called for a 125,000 gain.
Now the bad news.
The unemployment rate, derived from a separate survey of households, was forecast to hold at 9 percent, according to the survey median. The decrease in the jobless rate reflected a 278,000 gain in employment at the same time 315,000 Americans left the labor force.
The labor participation rate declined to 64 percent from 64.2 percent.
The way the job numbers work, 278,000 new jobs plus 315,000 out of the labor force is a nearly 600,000 job swing, accounting for the drop to 8.6% on the U-1 figure. That's not good news at all. People are leaving the labor force and they're not just disappearing. Granted, adding 278,000 jobs is a good, good thing. But the labor force drop is bad news and that's been going on for a couple of years now. The U-6 figure is down to 15.6%, but again that doesn't include the people leaving the labor force as the 99-ers continue to fall off the cliff. Thanks for blocking job creation measures, Republicans!
Also, job losses continue in the government sector. Also unnecessary. Also, thanks GOP.
The better news is that the U-6 number has dropped from 17.0% to 15.6% in one year. The bad news is most of that drop is people leaving the labor force completely.
We're still in trouble and have a long path to tread.
The better news? Nick Wilbur over at ABLC is 100% right: If the public sees the economy as improving (which it is) then President Obama will win in November. Which probably explains why FOX News covered the employment news like this:
Just a rounding error, you see. 8.6% unemployment, 9% unemployment, what's the difference when the President is a black Kenyan anti-colonialist socialist agitator?
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