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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Hongcha's picture

No third degree Sir Winston.  The clerk may think you owe him an answer but you do not.  And no one cares.  Tell him whatever you want.

Many (white American men, the last group to respect the old system) might ponder:

"Oh dear, if I don't respond to the bank clerk's demand for an explanation, might he mark my account and addend the e-mail he sends to the Mothership/NSA".

This is living in fear.  This beyond all doubt I refuse to do the rest of my days.  Nonstarter, lads.

Winston Churchill's picture

I lied of course, told her I was buying a kilo of crank.

Then I told her how I had cashed a cheque for 197k pounds thirty years ago with less questions.

Shut the bitch up.

My point was however ,exactly how are you guys still in the market ever going to get

fiat out of this closing loop system ?

 

Oldwood's picture

They are in the market because they believe they can beat it. They just know they can beat it, even though everyone knows its rigged. You bring up an excellent point but people in the financial markets see themselves much more of a player and a "winner" and don't saddle themselves with concerns about something as technical as actually getting your money out of the system. It is protected, it is being bailed by our government through the back door. They know this as it goes up at ever bad press release. But they don't know how to get it out. The whole economy could go into the dumper and they would be technically richer that Warren, but like trying to get your money out of the country, the costs may proved punitive.

semperfi's picture

more people are catching on to:  work is for suckers

Carl Popper's picture

This is typical after a credit hangover, a secular change that will last at least a generation.

People have realized they can live cheap and not work so much there is so much high quality second hand merchandise from demand pulled forward. Staple foods are plain, but cheap and healthy.

When pay and benefits so low and working conditions so stressful people are withdrawing and turning their attention and free time to other things, life's true priorities.

Mr Yellen cannot stop Kondratiev winters. It is a deep psychological change in the people, a revulsion and rejection of excess work and excess spending. Jump off that hamster wheel folks.

Caveman93's picture

Decided to "become" a stay at home father with my first child on it's way. Much more profitable and fullfilling to raise a child that can deal with this botched up world she'll have to survive in. I can promise you this, one day she'll understand the difference between money and currency. 

toady's picture

I know this will sound retarded, but I 'decided' the same. In reality the decision was made for me by financial matters.

When I was made irrelevant by technology I tried a couple new things, cab driver, roofer, but I never made enough money to cover the daycare costs. If I did six 12 hour days in the cab I'd come close / break even on day care for three boys, but that just plain sucks.

Better to be Mr. Mom. We can even save some money on groceries with the garden & home cooking.

CultiVader's picture

Good on both of you men...Our kids need their fathers available to them, not out busting their asses to break even and feed the machine. I will be teaching mine to farm.

FredFlintstone's picture

You seem fairly enlightened and forward thinking for a caveman. I should know, bro.

Caveman93's picture

Please and thank you! Do we have an IM on this Zero Hedge Thingy? ;)

overmedicatedundersexed's picture

carl wrote:

"It is a deep psychological change in the people, a revulsion and rejection of excess work and excess spending. Jump off that hamster wheel folks."

perhaps, it is the blood sucking regulatory and high taxes , that has people just giving up on risk taking..some may feel any wealth earned will be bled away to gov and friends of gov. this crop of pols and bureaucrats have the power to destroy anyone and give it all to friends ala kelo vs new london.

dobermangang's picture

Yup.  Go galt.  Plant a garden.  Plus, there's lots of free interesting, classical books to read on your tablets.

RaceToTheBottom's picture

Carl, I believe you are correct.  I do most of my shopping at Goodwill and I am supposedly successful. 

It took generations for people to get over the great depression mentality.  This is probably going to result in a healthier view of the world, but now it is tough.

If there is any justice in the world, people will take it out on WS.

MeBizarro's picture

It is largely due to demographics and people in their late 50s/early 60s simply exiting the formal economy from the data available last year through Q3.  The basic labor participation rate doesn't necesary provide you with any real insight.  It is just a number and the demographics of who is leaving that are gathered in other places is a lot more important.  Ditto the changes in employment by industry and full-time vs part-time employment.

Labor participation rate and unemployment number don't tell you much about the underlying trends of the economy. 

TheMerryPrankster's picture

but we have more than enough illegal immigration to counter balance retirement. most folks slipping through the porous border are young.

no one flees to el notre to retire, even gringos move south to retire.

what you seeing maybe influenced by demographics but its more a product of failed economic theories of Alan Greenspan and his circle jerk of brain dead intellectuals and pick pocket bankers. Fiat money backed by atomic weapons turns out to not be a viable economic model after all.

More fiat sir?

kw2012's picture

I have it figured out. Previous months were not as rosy as the actual numbers. Now with year end and a perfect excuse (Polar Vortex) all the bad news and maybe some future losses were dumped in to December, clearing up 2014 for rosier mid-term election numbers.

Dewey Cheatum Howe's picture

And the punchline if they don't extended unemployment benefits they will call QE a success when the unemployment drops by more than a few percentage points more by all those people being shifted out of the labor participation rate. Farcical shit show indeed. The lie must be maintained at all costs.

Caveman93's picture

New ICD9 code: 137.80 Patient has history of Galtness. 

Musashi Miyamoto's picture

I'm thinking along the lines of a 301.7 subset. I'm sure they'll reach a consensus in the DSM-6 SRC

Caveman93's picture

Ahh a pro...very bueno my friend!

wisehiney's picture

How many tens of thousands of sears/kmart/jcpenney/teenretailers will be gone next month? Retail surplus means less production. Auto inventory levels do not bode well for production. Bullish!

IridiumRebel's picture

Wise, wife and I went into Sears last week to hit the after Christmas super deals on Lands End stuff and pick up some jeans. We were the only folks in the store. They had like 8 associates on the floor. I imagine half of them will get the axe. I was doing auto-underwriting and biz has fallen precipitously. I am switching to education. Things are picking up. 

WongaWig's picture

Unemployement is falling, the Fed has saved us! Is there a secondary market to get rid of these food stamps?

IridiumRebel's picture

I just sold my weak shit on the open. I'll take the gains and walk. This is the real one this year I think. When they start to see multi-year or multi-decade lows I would say its time to cut and run. GTLA.

Winston Churchill's picture

+100

I agree wholeheartedly.I've only been playing FX not stocks since 2007(got out just in time.

Now I'm out of FX as well.This shit show is coming to a head this year IMO as well.

I'd rather sell too soon. Going 50% PMs. 50% bank of Serta.

IridiumRebel's picture

He who panics first panics best.

highwaytoserfdom's picture

long domestic drone, gun, bullet proof vest, police badge companies, usury crony capital , short freedom of speech , free markets, transparency, small business capital, savings. 

Got go POMO going to force another crony (aka Blackstone like) to take another 41,000 Fannie and Freddie houses...  Janet said QE works.. Danger  Will Robinson..   This TBTF TBTJ ponzi can is just a kicking down the road.... 

http://www.cftc.gov/MarketReports/SwapsReports/L2EqGrossExp

Sufiy's picture

Taper anuone?


Adam Hamilton: Silver Short Squeeze

  Adam Hamilton presents his outlook on the recent situation in Silver market. Gold and Silver have very strong start in 2014 recovering from the testing of Double Bottom in 2013 on the new money allocated to the sector. If next week this dynamic will continue we can have the very explosive situation as it happen in summer 2013 with Silver skyrocketing towards 25 mark. Junior miners should participate in this fireworks again like it happen with McEwen Mining and TNR Gold before, which we are following here. The chart above from KWN demonstrates that Silver is now extremely oversold.

 

http://sufiy.blogspot.co.uk/2014/01/adam-hamilton-silver-short-squeeze-s...

SAT 800's picture

I agree Silver is oversold. my only qualification is thirty years experience trading silver. I'm frequently wrong.

starman's picture

And so far 2014 will be the year of the mass layoffs !
From Sears to KMart, Macys , Ross, GM, Ford , Chevy are cutting cost by 20% plus between 14-16!

By the end of this year I see The DOW at 10,000!

markar's picture

You forgot JCP which may be laying off 100%

lakecity55's picture

......and U6 is at 89%.

J J Pettigrew's picture

The Administration buys unemployment with over gracious and unmonitored "programs".
The Fed attempts to reduce unemployment with money pumping.
Federal Left hand and Federal right hand working in opposite directions....what a surprise!!
Spilling money and ruining the currency all at once.....a perfect exhibit of the idiocy of central planning.

vegas's picture

This must be great news for President Goebbels; because as we all know, people who are on unemployment moola actually create jobs. So, according to Libtard logic, if everyone was unemployed getting gubermint checks, the unemployment rate would be 0 and the economy would be roaring! Thank God Amerika has the-smartest-guys-in-the-room at the helm. WTF.

 

http://vegasxau.blogspot.com

yogibear's picture

More overseas outsourcing, politically correct H1Bs from overseas and illegal aliens to take the existing American jobs.

More Social Security disability, food stamps and Obama phone.

Higher and higher US debt. Onward to $25 trillion.

RaceToTheBottom's picture

I say give H1Bs the complete American experience.  Felony strip search for all H1Bs....

Spread the wealth!!!!

SAT 800's picture

Why is there no mass political reaction to this Amnesty crap? Doesn't anyone understand the purpose of the excess bodies?

SAT 800's picture

A president who shills for amnesty for illegal aliens should be tried for treason.

TheMerryPrankster's picture

Pyscho-Pharmaceuticals, flouridated water and food, and 24/7 cable tv, ensure the populace is docile, catatonic and distracted.

they still think they have a Constitution, a functional government and healthcare. they are clueless with a capital clue.

The government is the media and the media says everything is hunkydory and look at these cute kittens aren't they precious and say what about that game last night, stay tuned for an exclusive interview with the star everybody is talking about right after this.

an endless loop of drivel that they apparently can't turn off is more important to them than their actual lives. they are zombies, they will eat each other and ask for more.

lakecity55's picture

(Excerpt from  former US History, published in 2040, Spanish Version, translated:)

 

"Slowly but surely, the citizens of America were disenfranchised, rounded up, and liquidated. Their bodies were recycled into cheap food used to feed the illegal immigrants who replaced them. By 2025, no actual Americans existed except for the few who escaped their national prison for other lands."

22winmag's picture

1978... those where the days.

Calmyourself's picture

http://nationalreview.com/article/368071/main-street-gop-groups-and-thei...

Michelle continues to expose the big labor/Soros/establisment funding of the GOP, no surprise to many here but a great eye opener..

 

NaiLib's picture

:) A good illustration of the fact that the "divide" between GOP and Dems is just for the galleries. They are all in it for the power and priviliges, nothing else. The falling deficit is the final proof. Its only been realized thanks to the sequester. Both sides can blame the other and they shrink the deficit. Next election they can all say: "So you lost out on our deficit shrinking?" "Not my fault - its the other guys" ... And finally they legalize pot in order to get an even more pacified population, eating junk food watching stupid reality shows hoping that they might win the loto one day, while smoking a little more.

 

USA is doomed.

lakecity55's picture

"Professor Smithers, your plan to legalize pot is working! We just ripped off a test subject's bank account and all he did was ask for a roach clip. The Big Boys are impressed. Expect more funding for your think tank."

"Thank you, Director."

Lost Word's picture

RINO's funded by left wing, Tea Party, not so much.

FrozenBarbie's picture

Obi-Wan Yellenki: "This is the recovery you are looking for".