The jobs report number that the media keeps talking about is the 146,000 jobs the economy created. What they are leaving out is the 350,000 people that have left the workforce. Why did they leave the workforce? Are they collecting benefits? Are many of them taking early retirement?
And how good are the jobs that are being created? Are they low paying part time work?
The economy created 146,000 jobs in November, and the unemployment rate fell to 7.7 percent from 7.9 percent in October. The numbers in the November report were not substantially affected by Hurricane Sandy, according to the Bureau of Labor Statistics (BLS).
While the headline numbers are positive, there are some major concerns inside the report. For instance, labor force participation fell sharply. Indeed, the sole reason for a decline in the unemployment rate was a drop of 350,000 in the number of people in the labor force. The BLS also substantially revised downward October and September numbers, where it estimated that 45,000 fewer jobs were created than originally reported. The labor market continues to struggle as businesses—particularly small businesses—delay hiring decisions out of fear of higher taxes through Taxmageddon.