Weak Jobs Report ... Unemployment Rate Drops

Unemployment dropped to 7.8% last month, but jobs created were only 114,000.

At first glance, the numbers don't make a lot of sense. Not many new jobs but the rate of unemployment drops from 8.1% to 7.8%. Hmmmm?

Here's one possible takeaway. If we could just get everybody without a job to quit looking for a job, the rate of unemployment would be ZERO.

Speaking of interpreting the numbers, my old boss Jack Welch has a different take (perhaps tongue-in-cheek?) in Jack Welch tweets conspiracy theory over better-than-expected jobs number:

"Friday’s better-than-expected jobs report sparked stock futures and conspiracy theories.

The U.S. added a scant 114,000 new jobs in September, but the unemployment rate fell below 8% for the first time since President Barack Obama took office in a potential jolt to the election....

The jobs report also prompted a tweet from former General Electric boss Jack Welch, who appeared to accuse the Obama administration of cooking the books:

 Jack Welch ... Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers"

 

Summing Up

More to come later.

Thanks. Bob.