Once you factor the people out of the work force who have stopped looking for a job, the unemployment rate is 17.5% and our work force has shrunk drastically in the last 5 months or so.
When the employment surveys go out, it does not include people who are not looking for work. People look at this economy and say "hell no i'm not looking for a job." they then leave the work force, causing unemployment to go up. Well actually it makes it look better than it actually is.
If you have 10 people unemployed out of 100 then the rate is 10%. But if say 5 people drop out of the work force then the percentage goes down because it is now 10 out of 95 a 9.5% rate. See it looks like unemployment has dropped meaning more jobs, but the work force has just gotten smaller. Which is bad.
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