Unemployment Decline Masks U.S. Labor Force Drop: Economy

The unemployment rate’s unexpected drop to a three-year low has overshadowed a less-positive labor-market development: fewer Americans are looking for work.

Last week’s Labor Department announcement that the jobless rate fell to 8.3 percent in January sent stocks and bond yields higher. The same report showed the share of working-age people in the labor force had declined to the lowest level in 29 years.