If Unemployment is Down, Why Aren't We Partying?


The unemployment rate fell from 10 percent to 9.7 percent, the manufacturing industry added 11,000 jobs in January -- which is the first monthly increase since November 2007 -- and the number of temporary workers grew by 52,000. Still, the stock market plunged and analysts are predicting it's a long, slow, rocky road to recovery. Why the frowny faces?

Well, for one thing, revised numbers show that the recession is worse than we thought. Job losses since the start of the recession in December 2007 totaled 8.4 million, substantially more than the 8 million previously reported. In addition, the Bureau of Labor Statistics had estimated that the economy lost 85,000 jobs in December; but the revised numbers show that 150,000 jobs disappeared.