People Not In Labor Force Soar To Record 91.8 Million; Participation Rate Plunges To 1978 Levels

Tyler Durden's picture

Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.

And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.

The jobless, laborless recovery continues to steam on.

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RaymondKHessel's picture



Shizzmoney's picture

DOW 99999999999999999999

disabledvet's picture

"With Taper rolling in RIGHT ON TIME." Yes We Can foodstamp the nation!

d edwards's picture

Isn't this just sickening? Disgusting? And the liars and propagandists never mention this, do they?

benbushiii's picture

Maybe QE doesn't work?

This is crazy, they have been pumping and manipulating the system for 4 years, and the economy sucks.  More QE has been spent on:

1.      Stock buybacks—earnings look better—no new jobs

a.      Senior execs make lots of money on options

2.      Companies buy technology—no new jobs

3.      People cannot earn a decent return on savings – no new jobs

a.      People earn less whether by job income or savings income – no spending, no more jobs

4.      The actual cost of needed goods has gone higher – no new jobs

disabledvet's picture

Oh they're pumping and dumping all right. "It took Rome 500 years to Fall...New York Five Minutes."

LawsofPhysics's picture

"Maybe QE doesn't work?" -

Ya think?  There is a really simple explaination for all this.

Simply put, you can "create" all the credit/debit/money you want out of thin air, unfortunately, in the real world you need calories (energy) available for consumption.  If those calories are not avialable to burn, you won't get shit done or be able to create anything of real value.  7+ billion, all competing for a better standard of living (and growing), meanwhile the calories available for consumption are what they are.  Pretty clear to most of us which direction your standard of living is heading...

czardas's picture

This energy problem has been finessed many times in the past with rising efficiency.  We know that energy is available (sun, seas, wind, electricity in the air, magnetic field, movement, etc) if it could be harnessed more efficiently and effectively.  I've debated this before with the Peak Oil crowd (a view I agree with by the way) and discovered that many are hostile to improvement.  Some seem frightened we may find a way out of our mess without reverting to the "old" ways.  I am convinced those competing billions will - through efficiency, miniaturization, technologies in the pipe line - have access to all the energy they need.  

LawsofPhysics's picture

Not shit sherlock, the problem isn't a lack of energy, it is a lack of energy available for human consumption.  You do realize that all that sunlight does in fact provide the energy required to do many, many other essential chemical reactions in the biosphere.  Yes, there is tremendous energy out there in the universe, unfortunately, the biosphere is currently limited to earth.


czardas's picture

what exactly do you mean by human consumption - food, heatm energy available through technolgical means or what?   I am not sure why, if humans can produced more energy, it cannot be used for human consumption which is a function of an organism's efficiency.

El Vaquero's picture

Oil has given us unprecedented mobility.  Those liquid distillates we get from oil are mighty convenient.  They can run tractors to plant enormous fields.  They can run my car so that I can be at any store, house or business of my choosing in town in under an hour.  They can propel aircraft that could have me in London before day's end.  They can also run the vehicles that take coal from the mines to the power plants.  Hell, if you're going way out in the boonies, you can strap a couple of jerry cans onto the back of a jeep and carry extra liquid distillates. 


While there are potential alternatives, none of them are nearly as convenient.  You want to run your car off of natural gas?  Cool.  But you'll either have a giant, very bulky tank, or you'll have less range, and no jerry cans.  Plus you have to compress natural gas, which takes energy.  Build power plants of whatever type and run trains off of electricity.  Fine, but that's not the same degree of mobility as being able to hop in a car and go wherever I want anytime I choose, and our current economy and infrastructure is built around that kind of freedom of mobility.  We could synthesize liquid fuel for aircraft, but that is highly inefficient, and requires a lot of energy from another source. 


No, we have not been working on alternatives, even if they be less convenient to anywhere near the degree needed, and we haven't been putting the infrastructure in place to widely use those alternatives. 

TuPhat's picture

@czardas,  You forgot nuclear.  It can be done cleanly, efficiently and safely.  You also don't seem to realise that Sun, seas, wind and "electricity in the air" (lightning?) are all different forms from the same source.  You can only get so much from sunlight and since it also grows our food I don't want it all used up for other things.

Quinvarius's picture

It has been conclusively proven human beings are not able to safely do nuclear.

czardas's picture

Guess we should also ban matches, knives, cars, planes and guns since "it has been conclusively proven human beings are not able to safely"  burn, cut, drive, fly or shoot

Buckaroo Banzai's picture

We need to do Thorium nuclear.

SAT 800's picture

Obviously. But we don't have rational national leaders; we have buffoons talking about global warming to get their new tax in place. We're so far from having a functional patriotic government it hurts my head to think about it. Nothing rational or productive is going to get done, you can depend on that.

piliage's picture

Bang on. 100% correct.

As of 2012, it was off the table in the US ARPA-E funding. The Chinese however, are all over it.

Maximum output right now is 100mg otherwise you create too much heat and get meltdown risk, but otherwise, yes, a great potential technology that the US is going to piss away to the Chinese.

El Vaquero's picture

Actually, we could.  Start by shutting down all of the nuclear plants that are in earth quake zones and other zones where there are likely to be natural disasters that would cause structural damage.  I'm sure I don't need to tell you why having a nuclear plant on the San Andreas fault is a bad idea, or why putting Fukashima where it is was a bad idea.  Then, for the next step, assume the worst possible meltdown is going to occur, and build a containment shell that will contain the ensuing hydrogen explosions, or put it far enough underground to contain a very bad day.  After that, don't put the plants right on any bodies of water, especially not ones capable of transporting uncontained waste to other places. 


And as Buckaroo Banzai stated, we should be looking into thorium.  While you do need a fissile material to start a thorium reactor, you do not need to enrich Th-232.  It is also theoretically possible to use thorium reactors to burn up a lot of the existing waste that is just sitting there.  I'd like to see tests that confirm that, but a lot of this stuff is fairly well understood. 


If you want to see something interesting, look up the oklo reactor.

PrintemDano's picture

Deaths as a direct result of nuclear energy, other than Chernobyl, which was a Communist run disaster, not a normal civilian nuke plant, is very close to zero.  You are quite WRONG.  But keep spewing your ignorance.  I find it entertaining.

Lost Word's picture

How many uranium miners have died from their jobs?

How many people will die from Fukushima?

Much more than "very close to zero".

piliage's picture

How many die each year internationally in coal mining, oil drilling, and gas exploration? Thousands. Nary a peep is heard about this.

There is real risk, and perceived risk. Nuclear, statistically, is much safer than other forms of energy exploration.

GolfHatesMe's picture

Obviously the Fed is not doing Enough QE  

trader1's picture

QE has worked to repair certain corporate balance sheets and increase general equity prices,

not to create new jobs.

QE may have prevented a worse situation than no QE, but that's debatable.

CPL's picture

4 years?  It started the first day someone was in debt to the system.

MeBizarro's picture

It did initially work and had a very pronounced effect.  Anyone who tells you different is selling an idealogical agenda.  The issue is that it has gotten less and less effective over time due to several reasons and that never worked quite as robustly as some advertised it to be in terms of job creation. 

RiverDrifter's picture

At least there was growth seen in the F.S.A. - so we got that goin' for us, which is nice.

Dr. Engali's picture

Unemployment benefits run out citizen? Well you are now an un-person. Have a nice day.

disabledvet's picture

Bah. There are twenty more Detroits where that came from. It's all good.

Future Jim's picture
Should America Save Detroit?

A lifetime of education from America’s media elite, such as MSNBC, CNBC, NPR, PBS, the NYT, the Washington Post, CBS, NBC, ABC, and CNN, have given me the foundation and principles that empower me to think for myself and thereby figure out why we can’t let Detroit go bankrupt.

Detroit is too big to fail.

Republicans are turning Detroit into a plantation.

Don't blame the victims of greedy capitalists.

“To attack Detroit is to attack black.”

Only racists would oppose a bail out.

We are all in this together.

It takes a village (a government).

We have to move forward.

Somebody has to be in charge.

There is a Constitutional mandate to promote the general welfare.

Government rightly has the power to implement any good idea.

When we're all on the same page, everyone benefits.

Everyone has a right to good healthcare.

Everyone has a right to a living wage.

Everyone has a right to good nutrition.

Just think of it as reparations for slavery.

Do it for the children.

Do it for Trayvon.

What if it were Obama's kids?

What if it were your kids?

If it helps just one child, no cost is too great.

In a free-market, who would save a dying child?

It would be bad if George Bush did it, but we can trust Obama.

Obama is The One.

Obama! Give us our orders!

Only racists distrust Obama.

Don’t let Republicans make a liar out of Obama.

The alternative is chaos.

The alternative is anarchy.

What would Jesus do?

After all, Jesus would be a Democrat.

Detroit has done everything right. It has been ruled by Democrats and unions for 51 years, and ruled by black mayors for 49 years. It even has the 3rd highest income tax of any city in America. Therefore, the problems of Detroit must be part of a vast right wing conspiracy. As an example, consider how the internet has allowed the spread of right wing hate speech from people like this guy. He says stuff like:

No man has a right to the fruits of another mans labor.

Government dependency is the new plantation.

When we’re all free to pursue our own interests, everyone benefits.

In a free-market, children wouldn’t be dying.

It takes a village – but not a government.

Nobody has to be in charge.

The legitimate purpose of government, is to minimize government.

Sooner or later, socialists run out of other people’s money.

Individualism made America great.

The world is the result of our individual choices.

America is the least racist country in the world.

The myth of Obama is busted.

Progressivism = Liberalism + Fascism

Progressivism violates the Soul of Humanity.

You can instantly become the person you want to be.

Freedom is the Promise of Reality.

Now can you see the problem? These are the ideas on which America was founded, and we all know that America was founded on slavery. Such right wing hate speech is what scared all of the white people into leaving Detroit. It is like something out of Atlas Shrugged, in which the most productive people in America left the system and formed their own society. Therefore, the solution must come from the federal government because, while it is easy to leave a city, it would be much harder for people to leave the country, and Obama’s DHS would stop them if they tried – and rightly so.

What about when it is no longer Obama’s DHS? I know it is hard to imagine how America could elect anyone who is not a Democrat ever again – but that is why we need global governance, so that wealthy individuals cannot escape their debt to their country and to the world.

As you can see, a lifetime of education from America’s media elite have given me the foundation and principles that empower me to think for myself.

Oldwood's picture

You gave me a headache. I understand sarchasm but it made me a little ill.

Future Jim's picture

Yes, progressives are quite nauseating with their cognitive dissonance, smugness, and fascism.

GetZeeGold's picture



You hit that side with Pelosi, Reid and Obama......and we'll hit the other side with Christie, McCain and Boehner.


The poor bastards won't know what hit them.

fedupwhiteguy's picture

very good post! thanks. speaking on Detroit, i really like the stories about whole blocks being razed and turned back into productive farms.

Agent P's picture

Not to worry, being an un-person qualifies as a disability, so you just hop onto a different government transfer program.  Now what do you say you and me roll down to the Walmarts in our scooter carts and SNAP up some Cheetohs and shit.

The work ethic that built America is dead.  We need a serious dose of some bad tasting medicine to get things going in the right direction again. 

dobermangang's picture

Not really an un-person, but a political pawn.  A talking point for the complicit main stream media to say how great things are going in the economy because the unemployment rate is falling.  Stalin would be proud of our media.

LawsofPhysics's picture

"Well you are now soylent green" - fixed.

Son of Loki's picture

This has to be uber-bullish.

NOZZLE's picture

My cousin makes 25 cents shoveling old peoples sidewalks,  you can too, goto and learn of the amazing opportunities in the newObama economy. 

IdeasRbulletproof's picture

I just typed that in and there was only a picture of Paul Krugman laughing. Am I in the place?

Clever Name's picture

Pauper! My cousins neighbors sister in law makes $400k from home!

Meat Hammer's picture

.gov employees can work from home now??

NevadaMirage's picture

Yes they can, and more are being actively encouraged to do so through legislation.

Black Warrior Waterdog's picture

This should do wonders for their productivity.

TeamDepends's picture

Thank you global warming for this exciting opportunity.

LawsofPhysics's picture

We will rally, simply because it's Friday, if nothing else.  You clowns still arguing about a "market" on Wall Street?


BeetleBailey's picture

Clowns resent that you used them as a reference....they have the Circus market cornered....THVM

Shaten's picture

any chance to get this chart but starting in 1945?

Withdrawn Sanction's picture

Here ya go.

Not quite 1945, but it tells an interesting story just the same.  A story when 2 paychecks were not necessary, and so the LF participation rate was far lower.  Now with so many hands dipping into the pockets of the poor working stiffs, 2 paychecks are barely enough AND the jobs are going in the crapper.  Aint life grand?