The Unemployment Rate Fell To 4.1% In July Even Though The Economy Lost Jobs

The Labor Department released its monthly unemployment report on Friday. It showed the unemployment rate fell by 0.1% in July to 4.1%. But that is not a cause for celebration. The economy actually lost 23,000 jobs during the month. The only reason the unemployment rate fell was because the civilian work force also shrunk - by about 264,000.

Here are the relevant statistics for the month of July:

SIZE OF THE CIVILIAN WORK FORCE:

169,094,000

OFFICIAL NUMBER OF UNEMPLOYED WORKERS:

6,916,000

OFFICIAL UNEMPLOYMENT RATE:

4.1%

DEMOGRAPHIC BREAKDOWN OF OFFICIAL UNEMPLOYMENT:

Adult men...............3.9%

Adult women...............3.7%

Teens (16-19)...............12.1%

Whites...............3.6%

Blacks...............6.3%

Asians...............4.0%

Hispanics...............4.6%

No HS diploma...............5.4%

HS graduate...............4.0%

Some college...............3.6%

Bachelor's deg. or more............... 2.7%

NUMBER OF MARGINALLY-ATTACHED WORKERS (not employed but no longer counted):

1,806,000

MORE REALISTIC NUMBER OF UNEMPLOYED (marginally-attached + official):

8,722,000

MORE REALISTIC UNEMPLOYMENT RATE:

5.16%