The headline unemployment rate fell below 8% percent for the first time in nearly four years to 7.8%. Good news, right? Not really. Buried in the report is the reason for the decline:
” . . . total nonfarm payroll employment rose by 114,000, the U.S. Bureau of Labor Statistics reported today.
“The number of unemployed persons, at 12.1 million, decreased by 456,000 in September.”
Wait: How can unemployment fall by an amount equal to four times the number of newly employed people? Simple. If you stop looking for work, you’re not unemployed.
Because of population increases America needs to see between 150,000 and 180,000 new jobs added each month just to stay even. We’re nowhere near that:
“In 2012, employment growth has averaged 146,000 per month, compared with an average monthly gain of 153,000 in 2011.”
September job growth is below this year’s average, which has fallen slightly from last year’s average. Simply put: new jobs aren’t being created at a rate that sustains a vibrant economy. This is not a recovery. And it never has been.