Quote:
Originally Posted by palmetto defender
I am not a statistician but I find it hard to reconcile how adding ONLY 114,000 jobs can result in a fairly substantial DROP in the unemployment rate.
This is counter intuitive.
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A VERY Basic Example:
Starting Stats:
100 Total Population of Workers or Those Looking For Work
92 Starting employed
8 Starting Unemployed/Looking
8.00% Starting Unemployment
Monthly Activity/Change:
10 Added Jobs
-10 Lost jobs
0 Net change in jobs
6 Added to Workforce (Kids, Immigrants, People Starting to Look, etc)
-7 Left workforce (Retired, No Longer Looking, Etc, no longer counted as Workers)
-1 Net Change in Workers
Ending Stats:
99 Ending Population of Workers (Starting Add New workers Less Those Who left Workforce)
92 Ending Employed
7 Ending Unemployed/Looking
7.07% Ending Unemployment
Change in Unemployment Rate = Down 0.83%
Change in Number Employed = Zero