I often explain to students, when I’m teaching economic models, they have to look at what’s happening behind the blackboard—all the implicit mechanisms that allow the models to work as they do.
By the same token, we have to ask, what’s going on behind the unemployment headlines?
The headlines today all trumpet the number of new jobs added in September (248,000), such that the official unemployment rate fell for the first time since August 2008 to below 6 percent (5.9 percent, to be exact).
That’s good news. Employment is picking up. But, of course, that’s not the end of the story. And Tyler Durden helps us see why.
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