Not a good sign as more workers leave the job market
In July of 2012 the work force participation percentage of all employees (male and female) went down to 63.7% according to the BLS data. That low level has not been seen in over 40 years. That is not a good sign for the overall strength of the recovery.
Assuming that there is a significant downsizing of the military and there are no new programs to get jobs for soldiers coming home then the true unemployment levels will not go down for some time.