How lucky for the president that his convention speech was followed by this morning’s slightly smaller unemployment rate and a more significant reduction in the U-6 rate (8.1 percent and 14.7 percent in August, compared to 8.2 percent and 15 percent
in July). For more analysis on the accuracy of unemployment rates, see David Ranson’s NCPA piece, “A Better Way to Track Unemployment.”
But looking beyond these numbers, trouble still abounds. That pesky labor force participation rate (LFPR) that politicians don’t like to talk about is almost half a percentage point lower than in July. It is now at a measley 63.5 percent, much lower than was even seen during the economic downturn of the Bush years. (See the chart below, courtesy of the Bureau of Labor Statistics.) Also, notice the similarities between the declining participation rate and the Phantom’s Revenge rollercoaster at Kennywood Amusement Park
in West Miffin, Pennsylvania.
This does not bode well for the future of tax cialis online pharmacy revenues and entitlement programs. Imagine the day when a president boasts of an unemployment rate of 1 percent, followed by “Oh, by the way, only 10,000 people are actually employed.” Or am I just a chronic worrier?