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December Unemployment Rate

A good part of this drop was caused by the ongoing decline of the number of workers in the labor force. The labor force participation rate dropped sharply to 64.1%. This is the lowest participation rate since 1983’s 64.0%. Anyone who argues that the drop in the unemployment rate signals an improving economy should be forced to recycle their Ph.D. in economics into aluminum beer cans. Continue Reading →

Will Quits Keep the Unemployment Rate High?

But, like so many economic events, there is a potential downside to this. Take a look at the totals above. The total entrants to the labor force are increasing, despite the fact that layoffs only increased slightly between February and March. The large number of quits could put upward pressure on the unemployment rate. Continue Reading →