The unemployment rate declined to 3.7 percent in September, and total nonfarm payroll employment increased by 134,000, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, in health care, and in transportation and warehousing.
This is utterly nasty and the drop in the unemployment rate is entirely due to an increase in the NILF figure -- people who have left the workforce.
Let's look inside:
In a word: Meh.
The 12 month change is below 2m. The rate has been over 2m for roughly the last year, but now it is solidly below. That's bad news, because the increase in working-age population is approximately 2 million, so if you can't manage to put up that number on a 12 month rolling basis you are losing ground.
Heh, look at that "formal unemployment rate" -- it's a multi-generational low. But does it mean anything?
Not really since there the employment:population ratio is nowhere near the 1969 figures. Having an "unemployment rate" that is extremely low because people aren't looking for jobs but are either sucking off public assistance or otherwise out of the workforce isn't positive -- it's negative since only working people pay taxes.
Have you looked at the annualized "debt to the penny" figures lately? No? Well maybe you should. I'll help you out with that in the next few days in my usual annual report on exactly how much bullshit Washington DC has emitted into the "economy" and thus the fraud embedded in the GDP "expansion" rate.
Once again having a Bachelors or better did not outperform; all of the educational categories gained, but both high school dropouts and degree-holders managed one tick of advancement. "Some College" and High School graduates both gained more, however, meaning that once again we are making McJobs and not, as is often said, positions for the "highly educated."
There are also indications of slack in the part-time statistics but this month I ignore them because of Florence. If they persist into next month, however, they are likely an early indication of a negative turn in the economy and employment situation.
We shall see.