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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corporatewhore's picture

Who cares? I'm too busy listening to rjkelly and lady gaga.

Alternatively I can hear refrains from Happy Days are Here Again, the sky above is clear again, so we'll sing a song of cheer again

B2u's picture

Where can I get free health care?

GetZeeGold's picture



Same place as 10 years ago......the emergency room.

Temporalist's picture

Back in the day hospitals were charitable organizations and they refused care to those who were wealthy enough to afford to pay a doctor.  Of course there was no shortage of cheap asshole who tried to get free care instead of paying.

MeBizarro's picture

Not true unelss they are a religiously-affliated/owned hospital and the second part is utter BS.  Tons of US hospitals closed during the Great Depression and there were large portions of the country especially in rural areas that didn't have a hospital located within 50 miles.  It was why Congress passed Hill-Burton in '46 along with to better deal with some of the returning WW2 veterans and to serve their needs locally better. 

Temporalist's picture

I suppose you think that hospitals started in the US in the last century instead of the couple of thousand years prior to that.


MeBizarro's picture

Hospitals a few thousand years ago?  There isn't a word in Latin, Greek, or Chinese that represents hospital.  It is from a later Latin word that basically meant 'guesthouse' and had little to nothing in common with a modern hospital except patients/people who didn't normally live there woudl temporarily reside there. 

Temporalist's picture

You are right, it wasn't Greek or Latin or was Persian.



jekyll island's picture


It's probably better to not get sick at all.  

mayhem_korner's picture



Try any of your local "We Buy Gold" outlets.  I bet you can get sum there.

SAT 800's picture

In Canada, Mexico, France, Germany, Sweden, almost any civilized country.

Jason T's picture

we must work for our own account.  unlimited employment available working for own account.  


thismarketisrigged's picture

o dont worry, these numbers r not real according to most of the fuckers on cnbc.


of course its only real and it only matters when they announce 215,000 jobs added, than it all counts.


futures should be getting hammered, instead they just creep back up to pre announcement, bc of course this is very bullish and all bad news is priced in and the economy is going at full throttle.


fucking comical and so predictable.

lunaticfringe's picture

Bad news cannot be accepted as bad. It is good. Pressure will be applied to the new FED forego the grand taper. This of course will be seen as good news and markets may rally another 500. Maybe twitter stock will hit 75.

TeamDepends's picture

Printing some "DOW 18000" hats as we ride the wave.

Rehab Willie's picture

At some point depopulation will be the only solution.

semperfi's picture

don't think they aren't working on that - fukushima ?

SAT 800's picture

It's already a required part of stabilizing the world; it's just a question of how it'll come about.

the not so mighty maximiza's picture

hey , count zero , you will have zero unemployment (heyyy, doing the fonz pose)

lunaticfringe's picture

I can almost hear that lapdog Liesman putting lipstick on this pig...except well...I vowed never to turn that shit channel on again.

BeetleBailey's picture

mute it...get an old Tee Vee and set it up to shoot darts at the cnbc douchebags....pundits....assholes....good data stream...but the mute button my brother....(c:

EuropeanBankster's picture

Cramer just gave a comment on CNBC: "These numbers are actually good for stocks" ... what a moron!

teolawki's picture

Ah yes. The Bear Stearns expert.

jomama's picture

just seeing that idiot's face makes me want to punch babies.

fockewulf190's picture

Just bought more phyzz.  Only sane thing to do when your dealing with this epic shitstorm.

1stepcloser's picture

Yellen just had a QE gasm... Job number rubbed the QE spot just right

semperfi's picture

thanks for making me just throw up my sausage mcmuffin !

Temporalist's picture

I'm pretty sure the sausage mcfrauden is what made you throw up the sausage mcfluffin.

Dubaibanker's picture

Wake me up when we reach the 'Summer of '69'! ;)

IridiumRebel's picture

if we are still here as a species by 2069 I will be surprised.

Kina's picture

Aaand the jobs that people do have....well part timers the new normal..... compare paid hours worked by the population now to total paid hours worked in 2007 .. inflation adjusted.


Unemployment rate much much worse than just a horrible participation rate suggests.

mayhem_korner's picture



Apparently, in Ivy League math classes (from whence all-knowing Fed and BLS leaders hail), they teach you that the key to fudging ratios is to tinker with the denominator.  Who would have known!  It smacks of this:

ak_khanna's picture

Let me get this straight, more the people stop looking for jobs, the lower is the unemployment rate.

So all we have to do is wait till no one is looking for a job because no jobs are available, then according to the current method of calculation we will have full employment. The fact that participation labor rate will go through the floor will have no consequences whatsoever on the economy.

Politicians are best at barking crap. Economic calculations and interpretations are not exactly their strong points.

The true extent of slowdown in the world economy can be judged by the data points which are not subjected to adjustments by the government. Eg. Change in Electricity and Fuel consumption, Ratio of working population to the total population of a country, Miles driven, Baltic Dry Index, Change in commercial Rental Rates etc

Oldwood's picture

Bad is good. What is it you don't understand? less people employed and not looking for jobs is good, right? That has nothing to do with a bankrupt society. Wealth and prosperity do not come from work or productivity. Wealth is a state of mond and is relative. My shitty job just became better because you now have a lesser one. People are now free to pursue their life dreams of artistry or writing a book and not worrying about income, food or healthcare. Our Safety Net will now provide. Bad is good and losing your job is the best thing that ever happened.

Rising Sun's picture

Of the 91.8M off radar, it would be interesting to know which firearms they possess and how must ammo stock they have.



IridiumRebel's picture
People are preparing for something. The latest Economist/YouGov poll shows that 39 percent of American households own guns, which represents a five percent increase over the number of gun owning households in 2012.

Throughout 2013, gun control proponents frequently dismissed the importance of empirical data on gun sales by claiming gun companies were simply selling multiple weapons to the same purchasers. But by showing that "nearly 4 in 10 American households have guns," the Economist/YouGov poll demonstrates that there was actually a broadening of the base of gun ownership last year.

According to the Washington Examiner, this increase in gun owning households marks a reversal of "the four-decade drop in household ownership" which began in the 1970s.

The poll found that 30 percent of gun owning households were Democrats, and 49 percent were Republicans.

Josey Montana's picture

What if we treated firearms ownership like owning a job?

If more people foreswear guns, then the gunless rate goes down, right?

Seriously, people stopped hunting in the 1970s.  Junior got a job in hte city and had no need of a rifle.  Now junior has kids of his own and sees the Hordes advancing, so he goes out and get himself something in .40S&W to keep under the pillow.

Hunting rifles v defensive weapons.  Speaks volumes about the perceived threat assessment of the U.S.  And yes -- I bet Junior will get himself something nice in .308 for deer season, too, since he's down to 29hr/wk at the only factory left in town and need to feed those kids.

Josey Montana's picture

Yes, it would be.



ifishivote's picture

The GOP should hold a press conference. If they were smart they would tell America that there is no need to extend unemployment benefits. Simply state that with the unemployment rate continuing to fall there is no need to extend. After all, people must be finding jobs to have the number plunge the way it has. This would force Obama and the media to explain to the public that the only reason for the decline in the rate is because of the Participation rate.


I'm one of the newly unemployed. I got my first check last Wednesdays.


Blano's picture

Welcome to the club, I'm 4 months ahead of you.

F.A. Hayek's picture

Hang in there. There are jobs if you attack the search and are relentless in the pursuit. Don't fall into the long term unemployment trappings.

Fuck you Obama!

Jack of All Trades's picture

The Bernank is leaving at just the right time . . .

J J Pettigrew's picture

Yep...he had an "exit" strategy all right....

moonwalk right out the back door...

Snoopy the Economist's picture

After announcing the taper of course. Now he can say "It wasn't my fault - I started to decrease QE before I left"


it's getting hard to count the number of POSs out there

Caviar Emptor's picture

They dun gave up an gone fishin'!

How can this not be a sign of impending utopia?
A nation of pure consumption without actual production!

Answer to our problems: we'll flip burgers for each other and do each other's laundry

papaswamp's picture

Be interesting to see if Yellen pulls out the big gun and goes for huge injection Japanese or Zimbabwe style? Next month another 1 million should be added to NILF since EUC is expiring for a huge number. Watch for participation rate to degrade massively.....the NSA number was even worse.

Winston Churchill's picture

Talking of Zimbabwe.

Needed $12k cash for something today.Was trying to pull $5600 from two different accounts

at two different PNC branches.Even that ammount got the 3rd degree.

Plus now they have lowered the drive thru' window limit to $1500 in cash.

At the rate this shit is progressing 2014 is going to be very  interesting.

I'm going to be buying a lot of PM's today .Fuck the price.