According to the Bureau of Labor Statistics, the unemployment rate fell to 7.8 percent in September after a gain of 114,000 jobs. That’s the lowest jobless rate in 44 months.
The fall in the jobless rate was accelerated by the discovery of 86,000 new jobs that had gone uncounted in July and August, for a total of 200,000 previously uncounted jobs.
That pattern suggests that September’s numbers may be revised upward as well. In an improving economy, as this one seems to be, monthly BLS stats typically undercount job creation because jobs appear in places they weren’t necessarily looking.
Moreover, the sharp decline in the unemployment rate is NOT due to a decline in those in the workforce. To the contrary, the BLS reports, “The civilian labor force rose by 418,000 to 155.1 million in September.”
In other words, a better economy is drawing people back into the job market to look for work. The average wage rose as well.
– Jay Bookman