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US unemployment rate falls to 5.6%

In December  the U.S. economy added 252,000 jobs, and the unemployment rate fell from 5.8% to 5.6%, however, hourly wages fell and many Americans "dropped out" of the workforce. In December 2014  economists had forecast 230,000 new jobs outside the agricultural sector, seasonally adjusted. Average hourly earnings fell by 0.2%, whereas for the 12 months it rose by only 1.7%, reported in the Department of labor.

 

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Truth SQ

For those wondering why average hourly earnings in December plunged by -0.2% on expectations of a 0.2% increase and why the November "Green shoot" surge in wages of 0.4%, which everyone took as a signal of imminent wage inflation was cut in half here is the answer: in December the number of workers employed in Food Service and Drinking Places, i.e., sub-minimum wage waiters and bartenders jumped by 43,600: the highest monthly increase since 2012.

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PKC 

I feel sorry for all who can't find a job. I'm 62 and I've seen all the economic horrors one can imagine: wars, recessions, oil embargoes, gas lines, 20% mortgage rates, even disco. But there was always a full recovery and growth afterwards. Now I am more fearful. Automation and globalization have rendered too many good American workers permanently unneeded. Maybe when enough of us Boomers hang it up, there'll be more room for others in the workplace.

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Bradley 4

U-1 numbers mean nothing, they only track people on unemployment benefits, not the total number of unemployed persons. Labor participation rates are at Great Depression levels, the U-6 rate is still over 11% and even that doesn't factor in all the discouraged and under-employed workers. The so-called economic recovery in only on paper, on the balance sheets of banks and financials that had QE money poured into their coffers. For real people, economic realities are only getting worse and more untenable.

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H2O

Tell a lie big enough and some people will believe them, tell a lie often enough and most people will believe them. Forget the Great Recession just call it what it really is: The Great Depression II

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