This month the unemployment rate was reduced to 7.8% from 8.1%, and a month earlier it was at 8.2%. This is a large drop but not many jobs were added. Instead, the size of the labor pool was reduced. If the labor pool was the same size as on January 1, 2012, the unemployment rate would be 8.4%. If the labor pool was the same as on January 20, 2009 (the day Obama took office), the unemployment rate would be 11.4%.
The U-6 rate (the real rate) is 14.6%. There are fewer people working today than on January 20, 2009. In order for unemployment to drop .4 points (from 8.2 to 7.8) the economy would need to create roughly 500,000 new jobs. The Bureau of Labor Statistics own numbers claim only 114,000 new jobs were created.
To create 500,000 more jobs the nation would need at least a 5% GDP growth. The Obama Commerce Department says our anemic growth rate is only 1.4%. In order to maintain current employment numbers (to account for population growth), you need a 3% growth rate. We had a 1.5% growth rate and unemployment dropped from 8.2 to 7.8. What happened is that they didn’t count 1.1 million people who have stopped looking for work.
These people are discouraged and given up hope. They are probably on SSI disability, and are treated as if they don’t exist.
Republican Security Council 