The BLS’ inadequate Unemployment Rate declined to 9.1% in July.  What is important is why?

In two months the number of Americans “Not in the Labor Force” has increased by 823 thousand.  In July alone the exodus amounted to 374 thousand people relative to June.  During the past 15 months "Not in the Labor Force" has risen by 3.6 million.  This is an economy in meltdown, but it does make the Unemployment Rate look more benign.

In two months the Labor Force Participation Rate has declined from 64.2% to 63.9%.  Since Obama took the helm of our “Economic Recovery”, participation has declined by 1.8%.


 
If the Participation Rate were the same as it was in January 2009, and 4.2 million Americans reentered the Civilian Labor Force, the Unemployment Rate would be 11.5%.  Thank goodness so many patriotic Americans have quit looking for a job.

The only good news in this Employment Report is that State and Local Government’s continue to layoff unaffordable employees (Something that was inevitable, but delayed by two years by misguided Stimulus Spending).


“State and local government entities will be required to cut back spending precipitously”
Excerpt from The Case for a Depression – 11/3/2008