Relax and thank you Barry - Teens impact Unemployment Numbers

Thank you Barry L. Ritholtz at THE BIG PICTURE for putting today's 260+ decline in the DOW in perspective. This morning's data may have made things appear worse.  Providing a glimmer of hope that the U-3 unemployment rate isn't as bad as it appears, an unexpected surge in teenagers and 20-25 year olds is responsible for a chunk of the unemployment jump.

More from Barry:

Also possible -- a seasonal adjustment that was expected in June failed to pick up more teens applying for jobs in May

"The government cautioned that the scope of the increase in the unemployment rate in May could be a statistical distortion. Month-to-month changes from April through July can be hard to adjust seasonally.

"There is a substantial flow of workers, particularly young workers, into the labor force during these months," said Phillip Rones, deputy commissioner of the Bureau of Labor Statistics. The unemployment rate for teenagers surged to 18.7% from 15.4%. A broader measure of unemployment that includes so-called discouraged workers rose to 9.7% in May from 9.2%.     

Here's a chart of teen workers employment:
click for bigger chart