On that Drop in the Unemployment Rate...

The “unexpected” drop in the unemployment rate (from 9.0% to 8.6%) isn't quite what it seems like.  More than half of that drop was caused by a drop in the “participation rate”.  What's that?  It's the main fudge factor used by the government to dress up the widely reported overall unemployment statistic – it's one of the “adjustments” they make to the largely unreported raw unemployment number.  This adjustment removes those people the government believes have permanently removed themselves from the ranks of those looking for work – including those who the government believes (or asserts) have permanently given up on the idea that they will ever be able to find a job.  This oh-so-conveniently gives the government a tool to make the widely reported number look better than the raw number.

Me, I think that person who gave up (assuming they really did) is just as much unemployed as the person who hasn't given up – and they should be reported as part of the overall unemployment number.  But I'm a well-known crank about such things...