Obama Speaks — Unemployment Drops

by Ryan on September 7, 2012

in Economy,Election 2012,Politics

Last night President Obama gave his big speech to the DNC accepting their nomination for President.  Not everyone was impressed.  Many thought it was small, filled with straw men.

One angle I was monitoring dealt with this morning’s unemployment report.

Because nearly 368,000 dropped out of the job hunt, the unemployment rate actually lowered to 8.1%.  When fewer people are looking for work, the government’s formula lowers the denominator.  So even though the unemployment picture got worse, the number went down.  Government math — gotta love it!  Also, total unemployment, the U6 figure, was at 14.7%.

Not to be too cynical, but I have a feeling that the U3 rate might just dip below 8% in one of the next two months just to reach that psychological “7-point-something percent” threshold.  Why not?  The unemployment picture in August is as bad or worse as it was in July, but the government’s funny math gives the surface impression things have slightly improved.

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Surprise! Unemployment Drops to 7.8% | Axis of Right
October 5, 2012 at 7:29 pm

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