The latest jobs report is out, showing the economy added 114,000 jobs, beating estimates of 113,000. The unemployment rate fell to 7.8%, the Department of Labor reported, due to the addition of 873,000 people who self-identified as employed.

That rate was a sharp drop from the 8.1% a month earlier. Those jobs were mostly part-time in nature. Also, the 7.8% jobless rate understates the problem of the underemployed.

What would the unemployment rate be if all the people who want a job suddenly re-entered the workforce? Answer: 11.63%.

If the labor force participation rate had remained constant at the 67.5% level at the end of the recession (in June 2009), the unemployment rate would have been reported at around 11%. Count the underemployed, meaning part-timers wanting full time work, and the rate is 14.5%.

The economy must add 13.3 million jobs over the next three years -- 375,000 jobs each month -- to bring the unemployment rate down to 6%, notes economist Peter Morici. That means GDP growth must be running at a 4% to 5% pace, not the 1.3% rate it’s running at now, a pace that has been trending downhill since last year.

Not good for a recovery that began in June 2009 -- since then, GDP growth has been anemic.

Here’s the math behind the unemployment rate if all the people who want a job suddenly re-entered the workforce, according to FOX News analyst James Farrell:

In September 2012, there were 6.73 million people who say they currently want a job, but are not in the labor force because they are not looking for work, says Farrell. If all 6.727 million of these workers suddenly started looking for a job, and would in turn be counted both in the workforce and as unemployed, then the unemployment rate would rise to 11.63%.

Sept. 2012 Civilian Labor Force: 155.063 million
Sept. 2012 People Wanting a Job But Not Looking: 6.727 million
Adjusted Labor Force: 161.79 million

Employed in Sept (Household Survey): 142.974 million
Employed as % of Adjusted Labor Force: (142.974/161.79) = 88.37%
Unemployed as % of Adjusted Labor Force: (100.00 - 89.27) = 11.63%

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Editor's Note: Add to that a U6 unemployment rate (which includes all demographics of the measurably unemployed) remaining unmoved at 14.7%. Another example of the Obama Administration playing fast and loose with the facts...manipulating the truth for political gain...It's not only pathetic, it is something that should tick you off!

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