The unemployment rate fell in May from April’s 5 percent to a mere 4.7 percent.
Great news, right?
Wrong. According to the seasonally adjusted Bureau of Labor Statistics statistics from its household survey, the economy added only 26,000 to employment rolls (The survey of employers found 38,000 jobs added.), while 458,000 dropped out of the civilian labor force as the population grew by 205,000. The number of unemployed fell by 484,000 because they were not looking for work. If you are looking for work, you aren’t unemployed. If everyone dropped out of the labor force there would be no unemployment at all. Zero.
The number of people working part-time grew by 468,000.
Congressman Cresent Hardy put out a press release saying:
“Today’s report is unacceptable and we must do better so that every American who wants a job has an opportunity. A good place to start is reforming our nation’s tax code, scaling back burdensome regulations that are hurting job creators, and replacing Obamacare with a patient-centered approach focused on quality that doesn’t define full-time work as 30 hours a week.”
He also noted the labor participation rate is the smallest since 1978.