Whopping 932,000 Americans Drop Out Of Labor Force In October; Participation Rate Drops To Fresh 35 Year Low

Tyler Durden's picture




 

The only two charts that matter from today's distroted nonfarm payrolls report.

First, the labor force participation rate, which plunged from 63.2% to 62.8% - the lowest since 1978!

But more importantly, the number of people not in the labor force exploded by nearly 1 million, or 932,000 to be exact, in just the month of October, to a record 91.5 million Americans! This was the third highest monthly increase in people falling out of the labor force in US history.

At this pace the people out of the labor force will surpass the working Americans in about 4 years.

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Fri, 11/08/2013 - 09:46 | 4134776 SoilMyselfRotten
SoilMyselfRotten's picture

That means we'll be hearing about lower unemployment numbers?

Fri, 11/08/2013 - 09:50 | 4134802 Shocker
Shocker's picture

Wow, that is all that needs to be said

Layoff List

http://www.dailyjobcuts.com

.

Fri, 11/08/2013 - 09:56 | 4134850 aint no fortuna...
aint no fortunate son's picture

Those numbers are back where they were when women had been flooding into the workforce for a decade. Put another way, we now have an economy where the great majority of it's households are living at a 2-income pace, but pulling in a single income to support it. That should work out well...

Fri, 11/08/2013 - 09:59 | 4134872 Max Hunter
Max Hunter's picture

We don't need no stinkin work force. Geesh. just look at the DOW

Fri, 11/08/2013 - 10:07 | 4134910 redpill
redpill's picture

The free shit club just got a lot bigger

Fri, 11/08/2013 - 10:10 | 4134929 GetZeeGold
GetZeeGold's picture

 

 

Where's the baseball caps?

Fri, 11/08/2013 - 10:17 | 4134971 kralizec
kralizec's picture

Zero participation rate, that'll do it!

Fri, 11/08/2013 - 10:48 | 4135124 gmrpeabody
gmrpeabody's picture

For every old dinosaur job of the past that we can get rid of..., that allows us to replace it with 2 new "job lite" positions. No more concern about having to work too many hours, or which benefit package to enroll in. And worrying about what your retirement package will look like is a thing of the past.

We are your Progressive Administration that listened to you. When we said "yes we can"..., we meant it!

Fri, 11/08/2013 - 11:12 | 4135250 Steve in Greensboro
Steve in Greensboro's picture

"If you like your job, you can keep your job.  Period."

Fri, 11/08/2013 - 11:44 | 4135355 Oracle of Kypseli
Oracle of Kypseli's picture

The US is running on fumes

 

Fri, 11/08/2013 - 11:55 | 4135386 Popo
Popo's picture

So... Taper off?

Fri, 11/08/2013 - 12:06 | 4135434 Bendromeda Strain
Bendromeda Strain's picture

More like tapered at both ends...

Fri, 11/08/2013 - 11:56 | 4135390 economics9698
economics9698's picture

So who cleans up the tribes houses when no one works anymore?

Fri, 11/08/2013 - 12:10 | 4135446 Bendromeda Strain
Bendromeda Strain's picture

Filipino slaves - just like the muslims

Fri, 11/08/2013 - 12:32 | 4135524 Jack Napier
Jack Napier's picture

and how much of this statistic is due to the government shutdown? Probably more than speculated here. Oh wait, that wasn't speculated. What was speculated is that this pace will continue... it could.

Fri, 11/08/2013 - 12:32 | 4135526 Eeyores Enigma
Eeyores Enigma's picture

It's the jobless recovery.

There will be no recovery until everyone is jobless.

I say that only half jokingly.

Fri, 11/08/2013 - 11:45 | 4135359 Captain Kink
Captain Kink's picture

I almost choked on my coffee...thank you, Steve.

Fri, 11/08/2013 - 12:09 | 4135442 Bendromeda Strain
Bendromeda Strain's picture

So, you were the down arrow...

Fri, 11/08/2013 - 10:49 | 4135133 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Hey deluded Baby Boomers! Think you are going to retire? Who is going to support your SS? The free sh*t army?

Fri, 11/08/2013 - 11:51 | 4135373 dontgoforit
dontgoforit's picture

I guess we'll have to grow our own beans and potatos.

Fri, 11/08/2013 - 12:12 | 4135452 Bendromeda Strain
Bendromeda Strain's picture

Mine your own bitcoins with a sharpened spoon...

Fri, 11/08/2013 - 12:24 | 4135498 Bad Attitude
Bad Attitude's picture

I thought legalizing tens of millions of illegals was supposed to support my future Social Security retirement? And, all I've got to do is learn a little Spanish.

Forward (over the cliff).

Fri, 11/08/2013 - 11:08 | 4135227 2bit Hoarder
2bit Hoarder's picture

um hello ... that is called full employment .. get it straight.

Fri, 11/08/2013 - 12:12 | 4135450 Kirk2NCC1701
Kirk2NCC1701's picture

Well, ain't that Grand?  932xGrand, to be exact. /s

Tyler, I don't doubt that the stats are bad, but we need the data to show how much is due to the Boomers retiring (voluntarily or otherwise), to get a better JPG.  It would also help to see the above data in context of the different Unemployment rates, e.g. U6.  Thx.

Fri, 11/08/2013 - 12:27 | 4135505 CrashisOptimistic
CrashisOptimistic's picture

An analysis was done that rebuts the demographic explanation.

The bottom line on it was the numbers just aren't that big for retirees, and they didn't all avalanche into retirement age in this 5 year period.  That's a gradual thing, whereas the employment destruction was sudden.  Not to mention that 65+ age cohort has higher "still working" numbers than ever before.

Further, the hispanic population of the US has a huge birth rate and they become job seeking age far more so than in the past, which offsets the boomer retirement numbers.

So . . . boomer retirements is a meme advanced by politicians.  That meme excuses policy, so they want it embraced.

Fri, 11/08/2013 - 10:37 | 4135076 1100-TACTICAL-12
1100-TACTICAL-12's picture

Good idea have some ballcaps made " Proud Sponsor of the Free Shit Army"..

Fri, 11/08/2013 - 10:40 | 4135085 onewayticket2
onewayticket2's picture

we make caps.  how about F$A with a red line through?

Fri, 11/08/2013 - 11:19 | 4135279 YBNguy
YBNguy's picture

"Free shit club," yeah they are most certainly an army. Wait until the EBT gets shut off and see how militant they get.

Fri, 11/08/2013 - 12:11 | 4135449 CrimsonAvenger
CrimsonAvenger's picture

First rule of Free Shit Club is that you can talk as much as you want about it - there's no stigma whatsoever. Hell, feel free to make rap videos about your EBT card and post them online, it's cool.

Fri, 11/08/2013 - 12:47 | 4135588 TBT or not TBT
TBT or not TBT's picture

Preppers' zombie fantasies come true.

Fri, 11/08/2013 - 10:44 | 4135101 SquirrelButtDan
SquirrelButtDan's picture

I like "Coerced Sponsor of the FSA" better. 

Fri, 11/08/2013 - 11:33 | 4135320 RaceToTheBottom
RaceToTheBottom's picture

You can put WalMart on the back.....

Fri, 11/08/2013 - 12:45 | 4135579 jal
jal's picture

" Proud Sponsor of the Free Shit Army"..

A BIG PICTURE OF THE BANKER WITH HIS BAG OF LOOT.

Fri, 11/08/2013 - 12:33 | 4135537 davinci7_gis
davinci7_gis's picture

That damn George W Bush...we wouldn't be in the situation we are in today if it wasn't for him.

/sarc

Fri, 11/08/2013 - 10:16 | 4134957 remain calm
remain calm's picture

Bush really fucked things up, thank God Obama is here working on cleaning up his mess. Things will be much better any time now. We are sooo fucked. Our kids and grand kids are going to have every right to euthanize us when we get old

Fri, 11/08/2013 - 10:23 | 4135009 corporatewhore
corporatewhore's picture

There isn't a dime's worth of difference between either party except the speed of the decline/crash into the wall.  You're either accelerating with the Dems or intermittently breacking with the Reps.

Nothing but government nonsense since the Gulf of Tonkin.  Time to tune in, turn on, drop out

 

Fri, 11/08/2013 - 10:27 | 4135031 autofixer
autofixer's picture

[correction] Nothing but government nonsense since: 1913. 

Fri, 11/08/2013 - 12:06 | 4135433 HardAssets
HardAssets's picture

[correction]  nothing but government nonsense since when Al Hamilton first sought to create a big central government/big insider business partnership to screw over the people. They bought off the bonds used to pay Rev War vets (since they had no hard real money) at pennies on the dollar. And then later redemed them at full face value. 'Screw those vets !' as far as they were concerned.

This sh*t has been going on for a long time. (And that's just the American version.)

When will people grow tired of it ?

Fri, 11/08/2013 - 12:15 | 4135469 eclectic syncretist
eclectic syncretist's picture

If you block off the x-axes of these graphs and try to find the inflection points where the Fed started making things better with their QE ZIRP crap, it can't be done.  In fact, these graphs point out quite clearly that the Fed's trillions of dollars in gifts to the rich didn't have any effect at all on the employment trajectory.  Why aren't these graphs getting rammed up Bernanke's ass at the Congressional hearings?

Fri, 11/08/2013 - 12:18 | 4135484 Bendromeda Strain
Bendromeda Strain's picture

Dude! I have long felt that Hamilton was the first corrupt seed planted in the system. Heck, even his provenance reminds one of our current corruptor in chief.

 

Fri, 11/08/2013 - 12:52 | 4135608 TBT or not TBT
TBT or not TBT's picture

Damn, Frank Marshall Davis was laying pipe back in the 18th century? Fucking vampires!

Fri, 11/08/2013 - 11:17 | 4135270 toady
toady's picture

You beat me ro the tune in, turn on, quote.

Looks like the boomers / gen xer's are finally taking the good doctors advice!

Fri, 11/08/2013 - 11:27 | 4135301 redd_green
redd_green's picture

so true, so true.   Anyone who thinks either party will fix anything, any tiny thing, is sick on fluoridated water, and GMO foods.

Fri, 11/08/2013 - 10:45 | 4135104 dontgoforit
dontgoforit's picture

More voters for the communists.  Get enough on that side of the page and there won't be any more 'elections.'

Fri, 11/08/2013 - 11:00 | 4135191 SokPOTUS
SokPOTUS's picture

I sure hope the hell Daryl Dixon has saved a few arrows...

Fri, 11/08/2013 - 14:20 | 4135938 Praetorian Guard
Praetorian Guard's picture

Ok, so if 92 million are out of work... and taking this quote above "At this pace the people out of the labor force will surpass the working Americans in about 4 years." Does that mean we are close to 50% UNEMPLOYMENT??????!!!!!!!!!

Fri, 11/08/2013 - 10:10 | 4134931 Dareconomics
Dareconomics's picture

The chart that explains the reason is right here:

http://dareconomics.wordpress.com/2013/11/08/qe-effect-on-the-labor-market/ 

Fri, 11/08/2013 - 10:58 | 4135184 dontgoforit
dontgoforit's picture

Damn.  X marks the spot.  That chart is chilling.  How do you ever reverse such a thing?  It would take monumental effort, sacrifice and extreme economic upheaval.

Fri, 11/08/2013 - 11:16 | 4135267 czardas
czardas's picture

Anyone who omits the disruptive effects of technological innovation and replacement of virtually all "muscle" jobs is not doing THEIR job.  The market can't absorb more because increasingly machines are doing the work - period.  Take the new factories around the world with minimal "staff", the replacement of workers in retail or the approaching disappearance of transportation workers  - these jobs once absorbed those without higher education, skills or higher ambitions but that's over.  I saw a special where yet another class is being hit - mechanics.  The railroads once employed thousands for safety checks, detecting rail and wheel cracks, routine maintenance but increasingly that is being done by machine faster, more accurate and cheaper.  

Fri, 11/08/2013 - 23:34 | 4137723 acetinker
acetinker's picture

Folks think I'm a eugenicist, but I'm not, even though my middle name is Eugene.  I'm one of "those" people who has used machines to multiply his output, err I still do, every day.  It makes me sad and pissed off at the same time, but young college grads would have to pay me to employ them.  I can program my equipment, it will do what I tell it to do, relentlessly, without asking questions, without any personal drama, for as long as I can keep electrons flowing into them.

Yeah, I know the computer has displaced many, many laborers.  I also know that once programmed, the computer does not make human mistakes.  So do my competitors.  Maybe one sunny day, a self-aware computer will make me obsolete- the algos have done this already to market saavy investors.  We'll see, won't we?

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