May and August of this year are the first two months that unemployment has dropped below 7 percent in New York since October 2001.

About 117,000 jobs were created since January 2004, as part of an upturn in the business cycle.

Last month’s drop in the official unemployment rate, however, was due to a 44,000-person decline in the labor force. The Department of Labor defines “labor force” as those currently employed, those who are laid-off and waiting to be recalled, or those who are “able, available, and actively looking for work.” The jobless who are not seeking work are not counted. The total number of those employed actually dropped by 10,000 in August. So the decline in joblessness last month is largely due to a substantial drop in those actively seeking work.

Since April, the unemployment rate both in New York City and nationwide has been lower every month than it was during the first quarter of the year.

U.S. unemployment still remains above 5 percent, as it has since October 2001.  
 
 
Front page (for this issue) | Home | Text-version home