Media reports that the unemployment rate for August fell to 6.1 percent. That sounds great! Except that it is meaningless. The labor force participation rate, that is the number of people actively working or seeking a job fell by one tenth of one percent, the exact same amount the jobless rate fell. Coincidence? I think not.
From Foxnews alerts:
“The U.S. economy added 142,000 jobs in August, the smallest increase since December, missing Wall Street estimates for an increase of 225,000. The unemployment rate fell to 6.1%, from 6.2% the month prior, matching expectations. Meanwhile, the labor force participation rate also fell to 62.8% in August, from 62.9% in July. “
Earlier this year, the Department of Labor’s June report held some very important clues of what is really happening. Of the 200 thousand or so new jobs created in June roughly 185 thousand were part time jobs. We don’t yet have the numbers on how many of the ‘new’ jobs in August were part time.
There is a confusing mix of economic numbers coming out of Washington and elsewhere that on one side indicate the U.S. economy is heading towards recovery, but on another; show we continue heading for economic collapse.
My money is still on the idea that the U.S. and Europe have too much debt, to many laws, too much taxation and no real solution to the mess created by big government, but always blamed on business. Might be time to stock up on silver or gold if you can afford it. The U.S. and Puerto Rico economic situation is NOT GETTING BETTER.
Only hard, fundamental change will turn the tide.