Unemployment statistics continue to show an improving job market, and while this is certainly a positive development, one should be very careful not to read too much into headlines about improving job trends. The reality is that while the unemployment rate falls, all is not perfect in the labor market.
The Federal Reserve is on record stating that one of the key measures they are closely watching is the rate of employment in the United States. This is not surprising given that the Fed has a two-goal mandate to control inflation and increase employment. In fact, the Federal Reserve has been explicit that interest rates will start to increase when the employment picture improves.