April’s unemployment number went from the 8.8% in March to 9%; this, in spite of the 244,000 new jobs created, according to the Labor Department.
How does this square? The explanation is that more people resumed looking for work. The number of discouraged workers, that is those who haven’t looked for work in six months, increased from 921K to 989K. Those marginally attached to the work force went from 2,434,000 to 2,466,000. The labor participation rate remains very low at 64.2% The percentage of Americans working is at its lowest since the early Ronald Reagan years.
Note, too, that in order to lower the unemployment number it takes 290,000 new jobs each month to keep steady growth.
Tyler Durden at Zero Hedge remarks, “Non farm payroll of 244K is great…until you exclude the 62K jobs from McDonald’s hirings and the 175K from the Birth/Death adjustment and you end up with 7,000 new jobs.”
The 62,000 Big Mac jobs represent 1 out of every 4 new jobs.
Do you get fried by that?