January jobs report declares the unemployment is now at 9%, although we only created 36k jobs, much less than the expected 140k jobs.
The reality is ugly. The jobs created was much less than expected, by a far margin. It wasn’t even close. Remember, we need to create approximately 150k jobs a month just to stay EVEN, with population growth and immigration.
So why a drop in the absolute unemployment rate? Simple. People are dropping out of the work force…thus artificially making the jobs number better. In fact, you will see true improvement in the employment outlook when the unemployment rate rises…because that will mean more unemployed people will enter the job force, looking for jobs, instead of not even trying.
Things are worsening my friends. Obama will spin it his way, but the truth cannot be denied.
P.S. – In related news, Canada, with a population 1/10th the size of the United States…created 69k jobs in January. Canada has now restored all of the jobs it lost since the beginning of the recession. The job rate increased to 7.8% versus 7.6% in December. This fits my above argument, that as more people move into the workforce, the unemployment rate will increase.