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).
![Cullen Roche](https://pragcap.com/wp-content/uploads/2022/01/Headshot2022-1-144x144.png)
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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