Unemployment Rate Drops to 7.8%

The Unemployment Rate dropped to 7.8% in September, the lowest rate since January of 2009, when President Obama was inaugurated.  This of course is very good news for President Obama and the Democrats.  The number of new jobs created in July was revised up to 181,000 from 141,000 and revised up in August to 142,000 from an original estimate of 96,000.   I’m sure it’s just a coincidence that the President desperately needed the jobless rate to fall below 8% but questions need to be asked.  Unemployment data is collected in two ways. 1)employers survey and 2)small household survey.  Those two figures do not always agree and the small household survey is suspect.  With more people looking for work, (up 7.6%) and with only 114,000 jobs added in September, (in line with estimates) it’s strange that there would be at 0.3% decerease in the rate even with the revisions in July and August.  The math doesn’t add up.  Of course without any real evidence, it’s just speculation.  Another important consideration is the data is somewhat deceiving as many of the newly created jobs were part-time positions and don’t necessarily reflect job strength in the economy.  They could vanish just as easily as they materialized.  They don’t provide sufficient income for someone to pay Federal Income tax, and they don’t provide benefits.  The largest decrease in the unemployment rate was among individuals with less than a high school diploma where the unemployment rate dropped from 12.o% in August to 11.3% in September.  The unemployment rate for college graduates remained unchanged at 4.1%.

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