Despite the report unemployment rate (U3) dropping to 9.0% for the month of January, this lower report tells a different story. Only 36,000 jobs were created in January, one-fourth of the expected job growth numbers expected. Analysts expected 148,000 jobs to be created last month.
So why did the unemployment rate drop? 150,000 American workers dropped out of the labor force, frustrated with the employment landscape in America. True unemployment in the U.S. is at 16.1% which represents the complete number of unemployed America.
The leftist media is doing cartwheels that the U3 unemployment rate is 9.0%, but the media fails to educate the viewers that the U6 unemployment rate is 16.1%. It just is not sexy, to say that the unemployment rate is 16 percent, is it?
John Williams, a Federal Reserve research states that today's jobs report is not cause for celebration. He also cautions that it might take until 2014 for America to see full employment (between four and six percent unemployment).
What has not been reported is that the continual inclement weather may have had a positive impact on the unemployment rate, but as the streets of America thaw, the unemployment rate will climb again. Unemployed workers who gave up in January due to the weather, may become reported unemployment in the fews to come as we move forward to Spring.