The Big Picture:
Let’s use a few specific examples.
We know, for example, why the unemployment rate is so low: NILFs.
(Not-in the–Labor-Force) The common (but incorrect) answer simply assumes
many more people are getting jobs. The reality is that people have been
dropping out of the labor force at an unprecedented rate. 5% unemployment
reflects a dearth of job seekers, not a plethora of new jobs.>
Some of the talking heads have even
touted the drop in long term Unemployed to 17.8% from over 20% in May (BLS Table A-9)
as a positive. How can that be bad, you may wonder? The answer is, it’s all
relative: Historically, an unemployment rate of 5% is typically accompanied
by long term jobless rate of 10.7% -- not 17.8%, according to the same EPI release that was widely touted as revealing better