Bernstein: Drop In Unemployment Rate Due To Drop In Labor Force
Former Obama administration economic adviser Jared Bernstein says that the drop in the unemployment rate is due to the number of people leaving the work force.
A couple of things jump out at me. First of all, this looks like one of those months where the gains in unemployment -- the reduction in the rate -- comes more from a decline in the labor force than more jobs. The employment on the household side looks like it didn't grow at all, which is actually fairly consistent with the past few months being large positive outliers.