One of the headline numbers from today’s jobs report: The national unemployment rate fell to 7.3 percent, its lowest point in nearly five years.
But Heidi Shierholz, economist at the Economic Policy Institute, says the jobless rate is falling not because the job market is improving but because discouraged workers no longer are counted as part of the labor force.
In other words, unemployment “dropped precisely because the labor market is so weak,” she says.
“There are about 3.8 million ‘missing workers’ — jobless people who would be in the labor force if job opportunities were strong,” Shierholz writes in an analysis today. “If our 3.8 million ‘missing workers’ were in the labor force looking for work, the unemployment rate would be 9.5 percent instead of 7.3 percent.
You can leave a response, or trackback from your own site.