Great Jobs Report, Still Poor Recovery

Who would have thought that Americans would cheer a 7 percent unemployment rate, well over four years after the beginning of the economic recovery? But the jobs report issued today by the Bureau of Labor Statistics is one of the best in years, with the

unemployment rate declining from 7.3 percent to 7 percent, 196,000 private sector payroll jobs created, and the labor force participation rate rising to 63 percent from 62.8 percent. Another 8,000 jobs were added in revisions from September and October. Total hours worked in the economy and earnings rose, and part-time employment went down.

There is a way to go before the job market catches up with the rest of the economy. Labor force participation rates are still at 1978 levels, and these Americans need to regain confidence and start to move back into the economy. The broadest measure of unemployment, U-6, still stands at 13.2 percent. But this report is the best sign of progress the economy has seen for a long time.