here in morgan hill, bob riddell, nbc bay area news. >>> the march unemployment report is down and at first glance looks good, 8.2%, a drop. however, a closer look reveals all kinds of bad news. the nbc bay area's steve handelsman is live in washington with what the report is actually telling us. steve? >> reporter: garvin, good morning from washington. this is not what economists predicted. it's not what democratic politicians were counting on. the news is bad for the recovery and president obama's re-election bid. but he got cheered at a forum on women's issues and he cheered the jobs numbers. >> we welcome today's news that our businesses created another 121,000 jobs last month and the unemployment rate ticked down. >> reporter: 8.2% unemployment in march sounds better than 8.3 last month, but overall more americans gave up looking for work and weren't counted. that's why the jobless rate improved. and there is some odd data. good weather, the early spring, sent retail sales up but retailers hired fewer workers unless the survey is wrong. >> that's just not consistent with the real