The Obama Boom continues to defy all Economic rules. Before the much heralded Obama economy, it was thought that you needed 150,000 jobs created per month just to keep up with population growth. 225-250,000 was the number once thought needed to drop the unemployment numbers. The rules no longer apply to the Obama Boom. For the past 2 1/2 years, the economy has been adding jobs at a pace of 130-150,000 per month. Yet the unemployment rate has dropped from 10% to 7.7%! There is a reason for this, as you read the report!
The U.S. economy created 146,000 new jobs and the unemployment rate slid to 7.7 percent, in a report much better than economists had expected.
Though most on Wall Street figured Superstorm Sandy to tamp down job growth, the Labor Department said the late-October storm that decimated the East Coast actually had little effect.
Also, the drop in the unemployment rate appeared to reflect little more than a continued exodus of workers from the labor force.
The labor force participation rate, already around 30-year lows, fell further in the month to 63.6 percent. That represented 350,000 fewer workers.
In all, there were a net 122,000 fewer people with jobs.
“Same old, same old. The government managed to get the unemployment rate down by shrinking the labor force and convincing a lot of people they’re better off collecting unemployment benefits or living off welfare than working,” said Peter Schiff, CEO and chief global strategist at Euro Pacific Capital. “It’s more bogus government numbers.”
That is why the unemployment rate keeps dropping. People are leaving the work force due to lack of jobs. The 5 million jobs Obama brags about are junk jobs that pay close to the minimum wage. But after a decade of anemic growth, Americans have lowered their expectations and that is why most think the economy is good.