The official unemployment rate dropped to 6.3% today because over 800,000 people left the labor force. According to the labor department that number is historic:
“It’s the largest monthly decline since the labor department started keeping those statistics.”
So despite the fact that we supposedly created 288k jobs, a number I am highly suspicious of, the unemployment rate would not have dropped nearly as much if the labor force hadn’t shrunk historic levels.
Obama’s fundamental transformation is working:
CNBC – Job creation accelerated in April as the U.S. economy added 288,000 new positions, while the unemployment rate plummeted to 6.3 percent amid a sharp drop in the workforce.
Economists had been anticipating 210,000 new jobs and a 6.6 percent rate.
Despite the big number, not all the news was good: The headline rate tumbled as 806,000 people left the civilian labor force, a development one market strategist called “shocking.” The labor force participation rate slumped to 62.8 percent, its worst of the year and near 35-year lows. Also, the average work week was unchanged at 34.5 hours, as were average hourly earnings at $24.31.