WASHINGTON (AP) — The U.S. economy added 162,000 jobs in June, the fewest since March. Yet the unemployment rate fell to 7.4 percent from 7.6 percent — the largest decline since February.
Why did the unemployment rate drop so much after only modest job growth? Because the government does one survey to learn how many jobs were created and another to determine the unemployment rate. The two surveys can sometimes produce different results.
One is called the payroll survey. It asks mostly large companies and government agencies how many people they employed during the month. This survey produces the number of jobs gained or lost. In July, the payroll survey showed that companies and government agencies added 162,000 jobs.
The other is the household survey. Government workers ask whether the adults in a household have a job. Those who don't have a job are asked whether they're looking for one. If they are, they're considered unemployed. If they aren't looking for a job, they're not considered part of the workforce and aren't counted as unemployed. The household survey produces each month's unemployment rate.
In July, the household survey showed that 227,000 more people had jobs than the previous month. And another 37,000 dropped out of the workforce and stopped looking for work. That lowered the number of unemployed and pushed the unemployment rate down.
Outpatient ROBOTIC HYSTERECTOMY. Trust an experienced Robotic Surgeon.