Unemployment continues to drop

Unemployment now stands at 7.8 percent, the lowest level since September of 1981 (7.6 percent), with the February figure slipping another 0.2 percent from the month before.

Virtually every category improved, including the chronically troubling rate among black teen-agers - falling from 47.9 percent in January to 43.5 last month. The continued decline in unemployment is a boon to President Reagan, who can advertise improvement in the economy - inflation and unemployment at relatively moderate levels - in his reelection campaign.

Some economists worry, however, that low levels of unemployment fuel inflation, since increasing demand for workers can cause wages to rise - and, in turn, those costs can be passed on to customers as higher prices. Wall Street, in particular, has been prone to this argument.