103,000 jobs are created, with unemployment dropping from 9.8% to 9.4%. That drop is boosted by increased in jobs from new estimates for previous months, as well as with a large number of people dropping out of the labor force (which is the employed and unemployed) to the “Not in Labor Force” category, particularly from the unemployed. As you can see, the net movement between the Not in Labor Force and the sections of the labor force is towards dropping out of the labor force.
Following on previous analysis in September, the trend where it is more likely someone will drop out of the labor force than find a job continued through the rest of 2010:
Felix Salmon has more on the state of the long-term unemployed, who will likely also drop out of the labor force in number as their unemployment benefits expire. Here’s Annie Lowrey on the fate of the 99ers as their UI expires. It’s going to be a long 2011.