Don’t buy into today’s BS unemployment rate drop, the size of the U.S. workforce is at a 27-year low and the bulk of the jobs added were “courier services” related to Christmas.
WASHINGTON — The U.S. job market strengthened in the second half of 2011, and added 200,000 jobs in December while the unemployment rate fell to 8.5% from a revised 8.7% a month earlier.
The better-than-expected monthly gain of 200,000 nonfarm jobs means American businesses have replaced more than 3 million of the 4.2 million jobs lost during the past 13 months. The private-sector jobs gained since employment bottomed in February 2010, in percentage terms, is the strongest recovery since the rebound after the 1990–1992 recession, when U.S. businesses added 4.2 million jobs in the same amount of time by late 1993.
The biggest growth came in transportation, especially courier services that staffed up for the holidays, health care and manufacturing, according to the U.S. Bureau of Labor Statistics.
Via Zero Hedge:
The nonfarm payroll number prints at 200K on expectations of 155K. The Unemployment rate comes at 8.5% — lowest since February 2009, and down from an upward revised 8.7%. U-6 15.2% down from 15.6% in November. Average hourly earnings rose at 0.2%, in line with expectations, previous revised to -0.1% from unchanged. Private payrolls +212L vs Expectations of 178K. Manufacturing payrolls rose 23K vs Expectations of 155K. Yet the unemployment rate trickery still continues, with labor force participation (prior revised), now at a 27 year low of 64%, and the labor force itself declined by 50K from 153,937 to 153,887. In fact, persons not in the labor force have increased by 7.5 million since January 2007! Bottom line — dropping out of labor statistics is the new killing it.