The volatility of BLS stats haven't changed with their latest press release this morning.
http://www.bls.gov/news.release/pdf/empsit.pdf
Another 50,000 unemployed workers were simply dropped from the work force in December alone making it almost 2 million jobs less in the active labor force than when Obama took office.
Looking deeper let's take a look at table A-16.
http://www.bls.gov/news.release/empsit.t16.htm
The "total not in the labor force" is particularly a sobering number. I know for a fact they are under on this stat also but regardless a shrinking labor force is not a good thing and massaging the primary unemployment number by a few basis points should only make you feel good if you are stupid.
Simply shifting 630,000 people from "Discouraged workers" to "Other persons marginally attached to the labor force" over a twelve month period is confusing for a good reason. It makes no sense.
For all you who don't want to wade the tables and stats let me brief on Dec 2011 BLS report and economic snapshot right now.
To do this let's start by going back to the minutes of the central bank's Dec. 13 policy meeting, released Tuesday, Fed officials noted the U.S. unemployment rate remained high despite a sizable drop in November. Though the U.S. economy looked stronger at the end of 2011, officials worried it could be hit by higher taxes and continued government layoffs in 2012, as well as repercussions from a likely recession in Europe. (I would also add refined fuel price volatility as a major factor)
Today's Labor Department data showed the biggest job gains for transportation and warehousing, which benefitted from seasonal hiring; retail; manufacturing; health care; and food services.
Still, for December there were 13.1 million unemployed, according to the household survey. A broader measure that accounts for both job seekers and part-time workers who would prefer to be working full time—the so-called underemployed—fell to 15.2% from 15.6% in November.
Today's report shows that Americans' hourly earnings rose by four cents to $23.24. Wages are up by 2.1% over the past 12 months, not keeping pace with overall inflation at 3.4%.
Overall nothing has changed structurally to support robust economic growth. Uncertainty is the "new norm" with Europe, our tax code, escalating federal deficit spending in conjunction with a decreasing private sector work force and revenue at the federal level.
Even if all of the above works out as soon as any substantial growth occurs we will see fuel prices spike.
Reality bites people.