As I understand it, the unemployment rate measures the people who are drawing unemployment benefits and actively looking for work.
There are two ways to cause it to drop: one is by people finding jobs; the other is by people not seeking jobs, and dropping out of the workforce.
A lo of the later has happened as, for instance the number of SSI/ Disability recipients has skyrocketed. You've got people saying, "Heck, I'm not unemployed, I'm permanently disabled."
Oh, and a third thing that will cause a drop in "unemployment" rates, is unmderemloyument." That could be people working at jobs far below their educational and skill level (MBA's shampooing dogs) and by people working part-time or seasonally when they really need and want to be working full-time year-round.
So the real numbers to look at are not "unemloyment," but "workforce participation." The USA has a workforce NON-participation rate of nearly 40%.
I usually look at the U-6 number...It’s about 11-12% right now, I believe...