Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.
It's important to put these statistics in historical context. In 1978, Jimmy Carter was president. The misery index was created during Carter's single term in office. The misery index is reached by adding the unemployment rate and the inflation rate.
Carter's term in office was marked by high unemployment, skyrocketing inflation and sky-high interest rates. As the economy got worse under President Carter's policies, people quit looking for work.
That's what's happening now. The reason people are giving up looking for work can be summed up in 2 new terms: 49ers and 29ers. Both terms were created by the Affordable Care Act. The 49ers refer to companies that are keeping their employee total below 50. The 29ers refer to employees whose hours were cut to less than 30. Both groups were created to avoid the ACA's mandates and penalties.
Let's remember, too, that many of the jobs that got created last year were part-time jobs. They weren't the types of jobs that can feed a family, much less create prosperity.
It isn't a stretch to say that this administration is the worst administration in terms of job creation in 50 years. This week marked the fiftieth anniversary of LBJ's war on poverty. President Obama's tax and regulatory policies, coupled with the Affordable Care Act, aka Obamacare, have started a war against prosperity.