The economy added 114,000 jobs last month, and the unemployment rate supposedly fell to 7.8% (from 8.4%).
Now we need context:
114,000 was the number of jobs the US economy needed to create each month in order to maintain equilibrium 50 years ago in 1962. During the Bush years, the economy created between 400,000 and 500,000 jobs to stay even.
So how is it possible that around a quarter of the number of jobs needed to keep the economy EVEN 6 years ago is enough to LOWER the unemployment rate nearly half a percent today?
One way is that the employment numbers do not reflect people who have stopped looking for work. This is called “dropping out of the workforce”, and it’s what huge numbers of people have done as this “recession” (which, it was claimed, ended back in 2009) has muddled on.
Whatever the reason, the numbers released today stink and Romney is right in saying this is not how a real recovery looks.