Tuesday, October 09, 2012

The unemployment rate drop (8.1% to 7.8%).

There is an article about this here which considers some of the nuts and bolts of this.  Basically it looks like the informal Household Survey component of the rate showed a 1 million job increase from August to September.  I suspect some explanation will eventually be given that shows there was a methodology change, but that it won't be announced until after the elections.

The number to watch is the Labor Participation Rate, which is the percentage of those of working age who are working relative to the total population.  This moved up from 63.5 to 63.6 in September, which is just one notch off its low.  Of course this doesn't give information on those who have part time jobs or are taking low paying jobs because their skills are no longer in demand.

1 comment:

Delirious said...

My house cleaner asked me about the U.S. unemployment rate. Maybe I'm a little cynical, but I told her that she has to realize that there are many unemployed who want to be unemployed. I know that it is tough to get a job right now, but I don't think those numbers accurately reflect the amount of people who want to live on welfare.