While it is great that the unemployment rate dropped nicely from 8.5% to 8.3%, that has more political significance than economic significance.  I expect that rate will rise between now and the November election, as discouraged workers, who had given up, realize there might be a job for them out them and re-enter the workforce.  That increased Labor Participation Rate will cause the unemployment rate to increase.  Republicans will talk about the unemployment rate, and Democrats will brag about the number of jobs created.

One indicator I follow closely is the Quit Rate, which measures how many people voluntarily gave up their job last month.  Workers are not likely to resign during such massive unemployment unless they have another job or faith they can get another job.  That number has been rising steadily. 

As predicted, the economy is producing more jobs than widely expected, because the economy is stronger than most people realize.  Last month, both the IMF and the World Bank decreased their estimates of GDP growth world worldwide.  I guess American employers didn’t get that memo??