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178,000 jobs were added in November. More than since 2007, I read. Unemployment down to 4.6%.
Sweet. There's evidence that middle class wages are ticking upwards, too, but of course, not enough. The middle class income has not been keeping up with the rest of the economy for years. Still, good news is good news.
That is not the "real" unemployment rate, and it is hilarious that author references all the BLS definitions and statistics then mixes in her own pet definition of "real" as if it were some commonly accepted idea that U-6 is any more real or significant than U-3.
As this is the ECONOMICS forum, it should be universally understood here that U-3 is the unemployment rate while U-6 is an alternative measure of labor under-utilization. These are defined matters of fact.
178,000 jobs were added in November. More than since 2007, I read. Unemployment down to 4.6%.
Sweet. There's evidence that middle class wages are ticking upwards, too, but of course, not enough. The middle class income has not been keeping up with the rest of the economy for years. Still, good news is good news.
Except the big drop in the unemployment rate stems, in good part, from people dropping out of the labor force:
Explaining the consistent increase in those leaving the labor force is complicated, with factors divided between an aging and rapidly retiring workforce, a skills gap that leaves job openings unfilled, and the nettlesome problem of too many people who find it's just easier to collect welfare and other transfer payments rather than go back to work.
And 100,000+ of those "jobs" were pizza delivery jobs, uber jobs, janitors, etc.. basically junk.
BLS saw things differently...
In November, employment gains occurred in professional and business services and in health care. Employment in professional and business services rose by 63,000 in November and has risen by 571,000 over the year. Over the month, accounting and bookkeeping services added 18,000 jobs.
Employment continued to trend up in administrative and support services (+36,000), computer systems design and related services (+5,000), and management and technical consulting services (+4,000).
Health care employment rose by 28,000 in November. Within the industry, employment growth occurred in ambulatory health care services (+22,000). Over the past 12 months, health care has added 407,000 jobs.
Employment in construction continued on its recent upward trend in November (+19,000), witha gain in residential specialty trade contractors (+15,000). Over the past 3 months, construction has added 59,000 jobs, largely in residential construction.
Except the big drop in the unemployment rate stems, in good part, from people dropping out of the labor force:
Correct.
Apologists claim the increased number of Americans dropping out of the labor force is due to Boomers retiring, but that data doesn't support the claim. In fact, just the opposite, Boomers are increasing their presence in the labor force.
LNU01300097 Labor Force Participation Rate 65+ Years
The same holds true for the 55-59 Years group which has increased from 69.3% in 2000 to 71.5% in 2016 and the 60-64 Year age group, increasing from 47.5% to 61.3% over the same time period.
No matter how you look at it, older people are staying in the work force longer.
So who dropped out of the Labor Force?
Mostly the 16-24 year old and 25-54 year old crowds. We can see that here:
LNU01324887 Labor Force Participation Rate 16-24 Years
The bottom line is that 13,881,835 fewer Americans are working now than in Year 2000.
Add that to the 7+ Million that are unemployed, and the unemployed becomes 20+ Million, so you can see where some people might claim the real unemployment rate is ~12.5%
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