by Rea S. Hederman Jr., James Sherk
The Heritage Foundation
December 07, 2012
The economy created 146,000 jobs in November, and the unemployment rate fell to 7.7 percent from 7.9 percent in October. The numbers in the November report were not substantially affected by Hurricane Sandy, according to the Bureau of Labor Statistics (BLS). While the headline numbers are positive, there are some major concerns inside the report. For instance, labor force participation fell sharply. Indeed, the sole reason for a decline in the unemployment rate was a drop of 350,000 in the number of people in the labor force. The BLS also substantially revised downward October and September numbers, where it estimated that 45,000 fewer jobs were created than originally reported. The labor market continues to struggle as businesses—particularly small businesses—delay hiring decisions out of fear of higher taxes through Taxmageddon.