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8 comments

[–] Sarcastaway 2 points (+2|-0)

While any drop in the rate of unemployment is good news, it should be noted that the BLS only accounts for people actively seeking employment. 5.9% unemployment doesn't mean that 94.1% of that group have jobs. In fact, a drop in unemployment could represent no increase in jobs, rather a decrease in people getting an education. It could also represent an increase in people giving up on finding a job, and those replying on public assistance to get by.

According the the BLS definition, if you have not applied for a job in the last 4 weeks, you are not unemployed. So if you have a job that gives you 10 hours of work per week, and want more hours, but you haven't applied for another job in the last 4 weeks, you are not counted as unemployed. Another example is a part-time student who has not applied for a full time job in those 4 weeks.

In short, unemployment is a poor measure of the job market, and a lagging indicator of the country's economic health. It is a good measure of the average success rate of getting a job during a 4 week period of application.