US unemployment is supposedly at 7.8 % - just in time for the election. How convenient. The key fact is this: If US employment rates were at pre-2009 levels, the unemployment rate would be 11%. In other words, 5 millions have stopped looking for work, another 4 million are on disability since 2009; and 5-10 millions are under-employed. Employment rates are now at 1980 levels.

Link

“The Labor Department reported today that U.S. employers added 114,000 jobs in September. The unemployment rate fell to 7.8 percent – where it was when Barack Obama took office and not at the 5.8 his administration forecasted.

No doubt, the top headline of a dropping unemployment rate is helpful for the president. Democrats are celebrating. While this is certainly better news than we’ve been getting – which tells us more the sad expectations we have in the Obama era – the new unemployment rate reflects deep economic stagnation and maybe a new normal.

Let’s review:

• The 114,000 jobs created in September is below the average created this year, which was 146,000.

• The 114,000 jobs created in September is below the average created last year, which was 153,000.

• The U-6 unemployment number, which reflects the entire labor situation, was basically unchanged at 14.7  percent.

• If labor participation was where Obama had inherited it from George W. Bush, the unemployment rate would be closer to 11 percent.

• Part-time people employment jumped from 582,000 to 8,613,000, the most since October 2011, and the largest one month jump since February 2009. That means the quality of jobs people are finding is dropping.

• And a comparison: During the Ronald Reagan recovery the country average around 275,000 new jobs a month.

If bringing the unemployment rate back to the 7.8 percent (with fewer people working at lousier jobs) is what a stimulus plan, three rounds of quantitative easing and endless spending gets us, this presidency can be safely categorized as one of the worst investments in history.”