Government Says Unemployment Rate Is 7.7%, 350K Dropped Out Of Labor Market – Updated

According to the government, the United States economy added a paltry 146,000 jobs last month and the unemployment rate dropped to 7.7%. I’m thinking quite a few Americans must have fallen off the unemployment rolls, seeing that the number of jobs added in a month is quite a bit less than the number of people filing initial jobless claims every single week.

Oh wait, here we go, according to Market Watch 350,000 people dropped out of the labor force. That explains the drop in the rate, which just yesterday Gallup found to be 8.3%.

The unemployment rate was projected to hold steady at 7.9%. It fell mainly because 350,000 people dropped out of the labor force. Employment gains for October and September, meanwhile, were revised somewhat lower. The number of new jobs created in October was revised down to 138,000 from 171,000, while September’s figure was revised down to 132,000 from 148,000. The biggest increase in hiring in November occurred in retail, professional services and leisure and hospitality. The construction and manufacturing sectors reduced employment. Average hourly wages rose 4 cents to $23.63 in November while the average workweek was unchanged at 34.4 hours.

Well, President Obama, the rest of the Democrats and the media will declare this a big success and a sure sign that the economy is finally taking off. Don’t even think about how all of those new jobs are low-paying. That’s why we have food stamps, silly.

Update: Check out the labor participation rate chart at National Review. It’s pathetic. Soon the unemployment rate will be negative as more and more people just drop out.