Discouraging employment- not finding jobs- is the real story behind the decline in the official unemployment rate.

The unemployment numbers we hear in the media are U3 unemployment, and simply disregard the fact that most of the reduction in unemployment from its 10.0 percent peak in October 2009 has been accomplished through a significant drop in the percentage of adults working or looking for work. Discouraging employment- not finding jobs- is the real story behind the decline in the official unemployment rate.