Chart Of The Day

Chart of the Day: Why the Unemployment Rate Fell

This is a controversial talking point in the employment report every month – why did the unrate fall?   Was it due to people falling out of the labor force or was it from actual job creation?  MarketWatch has a nice break-down showing that this month’s decline in the unrate was actually due to job growth and not just the fall in people looking for work:

This is always a key question — why did the unemployment rate fall? Was it from people giving up on looking for a job, or from new jobs? In July, the answer was much more from job creation (the red bar) then from the modest drop in the labor force (the blue bar).


Comments are closed.