My newest piece starts this way
The new unemployment numbers are a lot worse than the headlines indicate. The news media breathlessly reports that 120,000 jobs were created in November, but the working age population increased by about 160,000 people. But with job creation not even keeping up with the number of people entering the work force, how is it possible for the unemployment rate to fall from 9.0 to 8.6 percent?
The explanation is actually pretty simple. People are only counted as unemployed as long as they are actively looking for work. The obviously good for it to fall is from people getting a job. It is bad reason is if people simply give up looking for work.
In November, the numbers could hardly have been worse -- 487,000 people simply gave up looking for work and left the labor force. It is the 6th worst report since the recession started 48 months ago. Even more startling, 5 of those 6 worst reports have occurred since the “recovery” supposedly started in June 2009 (See this link here
). . . .
Labels: Op-ed, unemployment