Friday, December 2, 2011

Drop in Unemployment Rate Obscures Weakening Fundamentals


Those individuals not counted as part of the labor force swelled by 487,000 to a record 86.5 million.   This in turn led to a drop in the labor force participation rate to 64% from last months 64.2%. This is the lowest levels of labor force participation that we have seen since the early 1980's.   This weakness is further confirmed by the duration of those out of work which climbed to a new record of 40.9 weeks.
Read the whole thing. Zerohedge goes on to explain that even though 120k jobs were added last month, population growth in the US was about 200k. We're simply not creating enough jobs to accommodate our growing workforce.

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