The news:
An exodus of discouraged workers from the job market kept the U.S. unemployment rate from climbing above 10 percent in December, economists said.
Had the labor force not decreased by 661,000 last month, the jobless rate would have been 10.4 percent, according to economists including David Rosenberg at Gluskin Sheff & Associates in Toronto and Harm Bandholz at UniCredit Research in New York.
“The actual unemployment rate is higher than shown by the official numbers,” Bandholz said yesterday after a Labor Department report released in Washington showed the economy unexpectedly lost 85,000 jobs in December while the jobless rate was unchanged.
About 1.7 million Americans opted out of the workforce from July through December, representing a 1.1 percent drop that marks the biggest six-month decrease since 1961, the Labor Department report showed. The share of the population in the labor force last month fell to the lowest level in 24 years.
The economy is not getting better. To be sure, a lot of fiat money is being shoved through the economy and this, in turn, allows the government to calculate that GDP has grown, but the net amount of economic activity has been reduced and continues to decline. It will continue to do so until we stop borrowing, stop printing money and start encouraging wealth creation by making, mining and growing things.
As long as Obama’s policies are in place, this will continue to get worse.
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