Unemployment Rate Decrease Smokescreen

You may have heard that this week the unemployment rate (U-3) decreased today to 8.6 percent.  Well allow us to turn a fan on and explain that it is a smokescreen.  Take a look at how unemployment rates work here.

Common sense tells us that the unemployment rate decrease isn’t real; remember 402,000 workers lost their jobs last week.  This week another 315,000 workers were not counted any longer as they fell out of the work force.

The bottom line is that the U-3 unemployment rate decreased because not everyone was counted.

Don’t just take it from us though.