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Only 162K Jobs Added, Jobless Rate Drops To 7.4%

From a relentlessly incurious Associated Press:

US employers add 162K jobs; rate falls to 7.4 pct.

By CHRISTOPHER S. RUGABER | August 2, 2013

WASHINGTON (AP) — U.S. employers added 162,000 jobs in July, a modest increase and the fewest since March. The gain was still enough to help lower the unemployment rate to a 4½-year low of 7.4 percent, a hopeful sign in an otherwise lackluster report.

And never mind that we used to be told for years it takes around 200,000 jobs a month to lower the unemployment rate. Or that even as recently as two month ago we were told that the 175,000 jobs created in May "were too few to lower unemployment rate."

In fact, the addition of 175,000 jobs in May made the unemployment rate go up, from 7.5% to 7.6%. But now adding fewer jobs makes the rate go down. It’s magic. Or, more accurately, smoke and mirrors.

The Labor Department said Friday that unemployment declined from 7.6 percent in June as more Americans found jobs and others stopped looking and were no longer counted as unemployed.

In fact, this lower unemployment rate has nothing to do with more people working. Once again, it’s just because more people have given up trying to find work.

If the labor force participation rate was back at where it was just a year ago in July 2012, the unemployment rate would 7.8%. If it was back to the level it was when Obama took office, it would 10.7%.

Still, the government said employers created a combined 26,000 fewer jobs in May and June than previously estimated. Americans worked fewer hours in July, and their average pay dipped…

So even May and June’s numbers were worse than originally reported. As always. What a surprise.

"A clearly weaker-than-expected report, but one should not overstate it — the unemployment rate continues to trend down and average job growth of 175,000 will be more than enough to continue to push it lower," Peter Newland, an economist at Barclays Capital, said in a note to clients…

Though it never used to be.

This article was posted by Steve Gilbert on Friday, August 2nd, 2013. Comments are currently closed.

4 Responses to “Only 162K Jobs Added, Jobless Rate Drops To 7.4%”

  1. dasher

    Now, I’m no rocket scientist, but I did graduate college (Economics, no less) and I have been gainfully employed with the same employer for the last 23 years. That said, I am AMAZED that such an article can be written, much less published.

    Here is another article from USAToday with two links within pointing to a similar article as this one (above). God help us if/when a Republican president takes office, these writers will have to be talked down from the window ledge should the employment levels not be perfect!

    http://www.usatoday.com/story/.....s/2609035/

    Otherwise, I’m not gonna let you get my blood pressure up today Steve – have a great weekend. : )

    D.

  2. Do y’all remember back at the beginning of this century when Bush’s policies were beginning to pull us out of the recession that Clinton/Gore left us and the media kept saying that the only jobs that were being created were hamburger flippin’ jobs?

    Now we only get part time hambuger flippin’ jobs. Thanks Li’l Hussein!

  3. BannedbytheTaliban

    U.S. employers added 162,000 jobs in July, a modest increase and the fewest since March.

    This makes no sense. How can July be higher than June, but be lowest sinch March? Would that make June the fewest since March?

  4. jfpack

    Just think, when everybody drops out of the workforce, the unemployment rate will be ZERO!!!




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