The Ugly Details Behind Today's Big Jobs Report Miss


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This morning’s unemployment report was a mixed bag. Yes, the unemployment rate went down. But, actually, that’s because people are choosing to drop out of the work force altogether.Hours worked and hourly earnings may have been up, but this is nothing like what people thought was coming after the booming ADP report.

But the story here is that while the unemployment rate may be falling, and wages and hours rising too, many are being left behind as a result of a recession that has brought structural changes to the U.S. economy (real estate sector blown to pieces).

The amount of Americans unemployed for more than 27 weeks is increasing, after a minor dip in 2010.

The duration of unemployment is rising yet again. People are just not going back to work.

And now many are dropping out of the workforce all together, as they can't find jobs to fit their skill sets.

One reason many aren't going back to work is that the construction sector simply isn't coming back. Those who lost their jobs here may have nowhere else to go.

In terms of the U.S. manufacturing sector, it's the 1930s. If you're looking for a job there, it may be improving slightly, but the situation is dim.

The unemployment rate is down to 9.4%. But what does that mean when more and more people are exiting the workforce?

Civilians unemployed for 5-14 weeks in in decline, but more and more people are being added to the long-term unemployed list.

And that has to be taken into consideration; the rate or decline in short-term unemployment isn't telling the structural story.

Worried about the outlook for the U.S. economy?

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