Jan 10, 2014
The reason why the unemployment rate seems to be the best since 2008 is that so many Americans have given up looking for work. In December the number of “discouraged workers” surged by 155,000. Discouraged workers are those who want employment but have given up the search believing that there are no jobs for them. Since the official unemployment rate measures only individuals who both want work and are actively seeking it, the exit of over a hundred thousand people from the labor market causes the unemployment rate to fall and for things to look better than they actually are in fact
Why Today’s Unemployment Number Isn’t So Great After All