The Labor Department reported today that the unemployment rate rose from 5.0 percent to 5.5 percent in May, the largest monthly spike in more than two decades. Secretary of Labor Elaine Chao's explanation?
"Today's increase in the unemployment rate reflects the fact that unusually large numbers of students and graduates are entering the labor market."
Sounds ridiculous? That's because it kind of is. Here's some sense from Jared Bernstein at EPI:
"An increase in the youth labor force played a role in May's unemployment spike. However, even if we take teenagers out of the data, unemployment still rises from 4.5% to 4.8%, a considerable 0.3% increase, and well above the 4.0% adult rate of one year ago."