Unemployment Rate

By Sudeep Reddy

The unemployment rate fell in June to 9.5% from 9.7%, reaching its lowest point since last July. But the decline wasn’t due to improvement in the labor market. Instead, jobless Americans dropped out of the labor force in droves.

June’s decline in the civilian labor force of 652,000 was the sharpest one-month decline in 15 years in the Labor Department’s survey of households. Some people could be frustrated with their job searches, choosing to take time off or pursue other options like school. Some could be experiencing the end of their unemployment benefits, which required them to maintain an active job search. Whatever the cause, over the past two months almost one million people simply stopped looking for work. And over those two months, the U.S. population grew by 361,000 — with more than half of that gain coming in June.

Lexus Engine Recall

After reports yesterday that Toyota was preparing to recall almost 270,000 Lexus models for faulty engines, the Japanese automaker has since pulled the trigger and formally announced a recall. Or have they?

In a press release by Toyota, the company states that, “Lexus has discovered faulty valve springs in some V8 and V6 engines in certain Lexus models sold in the U.S. Due to slight variations during the manufacturing process, some foreign material may have contaminated the valve springs resulting in potential breakage.”