By Philip Bump
The good news from the jobs report released on Friday morning was that the unemployment rate dropped to 3.9 percent. As you may know, this is measured with a different survey than the one that tallies how many workers are employed, meaning that, at times, there can be a disconnection between the two figures. That was the case on Friday: Economists predicted that more jobs would be added, meaning that the numbers were lower than expected, but the decline in the unemployment rate was good news.
But there’s an important caveat to that unemployment rate number. It is calculated by figuring out how many of those who are working or looking for work don’t have jobs. But that means that if more people simply drop out of the labor force — that is, they aren’t looking for work — the unemployment rate can go down even without more people getting jobs.
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