• By
  • Phil Izzo

The U.S. unemployment rate dropped to 8.1% in April but a broader measure was unchanged at 14.5% and a separate survey noted that the economy added a paltry 115,000. Why the drop?


In April, the number of unemployed dropped by 173,000, but so did the number of people employed — by 169,000. That indicates that those people didn’t necessarily find new jobs, since the overall labor force declined by 342,000.


To be sure, the moves in the household survey are volatile. This month’s numbers follow a similar move in March, but are a deviation from a trend earlier this year. January and February saw workers returning to the labor force, and strong growth in the number of people employed. This month could just be payback for recent strength in the survey.


Even though the broader rate dropped, there were more discouraged workers in April and the number of part-time employees who want full-time work also increased.



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