Fewer jobs but less unemployment: 652,000 fewer job-seekers 

This isn’t the first time it’s happened this year, but the unemployment rate has dropped, even as employment has declined by 125,000 jobs. Here’s the reason why:

The labor force declined in June (-652,000).  Following increases earlier in the year, the labor force participation rate has declined by half a percentage point over the last 2 months.

In the U.S., we measure the employment rate by dividing the number of jobs by the number of job seekers, so when the latter declines, the former increases. In June, 9.5 percent of those “participating in the labor force” lacked jobs. In May, a net 322,000 people dropped out of the labor force.

Another top-line measurement that the White House is sure to play up: Private payrolls were actually up by 83,000 last month. Most of the job losses came from the U.S. Census.

About The Author

David Freddoso

David Freddoso came to the Washington Examiner in June 2009, after serving for nearly two years as a Capitol Hill-based staff reporter for National Review Online. Before writing his New York Times bestselling book, The Case Against Barack Obama, he spent three years assisting Robert Novak, the legendary Washington... more
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