Friday, August 7, 2009
Please correct me if I'm wrong.
But the labor force is really big, 154,503,000 (see Table A on the BLS news release).
Compared to that, the number of unemployed is really small, 14,462 (see the same table).
If the decline in number of unemployed, -267,000 was 63% the size of the decline in the labor force, -422, which shift is the dominant factor in the falling unemployment rate?
I'd say the sizable shift in the really small numerator. Apparently, the AP does not think so:
One of the reasons the rate went down, however, was because hundredsI'm pretty sure that this should read: The main reason that the unemployment rate went down was due to the number of unemployed falling significantly as workers left the labor force.
of thousands of people left the labor force. Fewer people, though, did
report being unemployed.