While the unemployment rate, 7.3 percent, has fallen to its lowest level since December of 2008, it is important to remember that the unemployment rate is, and has been, a poor measure of job growth in the current recession. Relying only on the unemployment rate fails to account for those who have dropped out of the labor force due to poor employment prospects.

It is more appropriate to look at the employment rate and measure the labor force participation, which is the share of working-age people in the labor force. While this also includes those of working-age that might not participate in the working force even in a more favorable job market, it is more encompassing, making it a better indicator.

The August jobs numbers show that participation in the US dipped from 63.4 percent down to 63.2 percent, the lowest since August 1978. This is coupled with lower than expected job growth, painting a grim employment picture.