The Economic Policy Institute points out that the drop in the unemployment rate for July rings hollow:
The fall in unemployment was largely driven by a drop of 556,000 in the labor force, and thus is not indicative of an improvement in the labor market (employment actually fell in the survey from which the unemployment rate is derived). In fact, hours worked per week, a measure of the strength of labor demand, fell to the lowest level on record (tracking began in 1964). Despite some positive indicators of renewed economic activity, the nation remains mired in a deep and persistent hiring slump.
Basically, people are giving up looking. Underemployment is a big issue. Payrolls have contracted by one million jobs since the "recovery" began. None of this is reflected in a logical manner by the BLS numbers.
It's a short piece, just one page, and worth a read.
Posted by nicole at August 10, 2003 10:36 PM