Last Friday's dismal jobs report (where 23K jobs were lost) had a silver lining: the unemployment rate dropped to 4.1%, the lowest since June 2025, dinging expectations that the AI revolution would lead to a spike in unemployment. There was just one problem: unemployment dropped not because more people found a job, but because the labor force shrank by a whopping 264K, and down more than 2 million since the start of the year.