I ask because as one podcaster put it at that time "you pretty much can find a Jedi by looking under a rock." So in what sense does Yoda mean that since there where other Jedi hanging around?

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    Remember - when Lucas and company came up with the line, there effectively was no EU. This is one of those times where the old canon levels really came into play: G level trumped everything. The movie said Luke was the last - and the EU decided to not adhere to that statement. The EU is the one that retconned everything. – phantom42 Mar 10 '15 at 11:33
  • @phantom42 What's the retcon? – Lenie Lenape Mar 10 '15 at 11:53
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    All the other Jedi in hiding. – phantom42 Mar 10 '15 at 12:01
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    Ah, scifi.stackexchange.com/a/45172/23243 is one potential answer, i.e. that the Jedi order itself was essentially destroyed. There were light side force users out there, but you couldn't really call them Jedi anymore. – FuzzyBoots Mar 10 '15 at 12:53
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    Yoda Ghost: So see you, what told you I did true was... from a certain point of view – Mikey Mouse Mar 10 '15 at 14:42

As per the two opposing answers found in At the start of A New Hope are Yoda and Obi-Wan really the last remaining Jedi?, it's true from a certain point of view. While there were members of the former Jedi Order still alive, still Light Side users, the Order itself was essentially shattered. The council itself had been slaughtered except for Yoda. One way to look at it was that Yoda and Luke themselves were no longer Jedi, merely Light Side users. The other is that Yoda was the sole remaining member of the establishment and therefore the only one left who could grant Luke membership, creating a continuity of leadership.

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