The BLS reported that 96,000 jobs were added. Since August of last year, nonfarm payroll employment increased by 1.8 million jobs, but this only amounts to a monthly average of 151,000. Why is this significant? In order the for the unemployment rate to fall due to people getting hired, monthly job growth needs to consistently exceed 150,000, the “natural” growth in the population.
The modest job growth explains why since August of last year the unemployment rate fell from 9.2 to 8.1 percent. It is not because people got hired in large numbers. It is because people are staying in school, seeking training, retiring, filing for disability, or just dropping out.”