Big news came out today – a drop in the unemployment rate. Sort of.
The government has been playing games with the unemployment numbers and mysteriously dropped 1.2 million people from the labor force participation rate. The unemployment rate is a measure of how many people in the potential labor force are employed. If there the same number of unemployed but fewer people in the potential labor market, the unemployment rate as a percent of the total drops. By the government’s new calculations, the labor force participation rate is at a new 30-year low.
So what’s the real unemployment rate? No idea.