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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Fri, 01/10/2014 - 11:23 | 4319399 RaceToTheBottom
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It would be good to see the data in graphs that go back beyond 1990

Fri, 01/10/2014 - 11:26 | 4319408 mightybillfuji
mightybillfuji's picture

Your all missing the greatest part of this.


The FED itself has only two choices: Accept the published numbers and continue to unwind the QE, which will harm the (really weak) economy and US debt structure or OPENLY ADMIT that the gov't numbers are actually lies, and don't mean anything like they say, and stand pat on the QE.


Yellen gonna have a rough first day at the office.

Sat, 01/11/2014 - 03:57 | 4322250 TheMerryPrankster
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She'll likely spend that first day on the job, on her knees like Bernanke and Greenspan used to spend every day, swallowing Banker spooge and saying "Thank You".

The revolving door means bankers get to take turns blowing each other.

Fri, 01/10/2014 - 11:39 | 4319457 Bunga Bunga
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What will 00-Yellen do?

Fri, 01/10/2014 - 11:50 | 4319504 insanelysane
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We had a Summer of Recovery and now a Winter of Recovery, too bad they were 4 years apart.

Fri, 01/10/2014 - 11:58 | 4319533 papaswamp
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What should be scaring the shit out of every one ....If one looks at Table A-1 (not seasonally adjusted) in the BLS report it shows a decline in the size of the civilian labor force from Dec 2012 to Dec 2013 of almost 500,000. With in that, the participation rate also declined from 63.4 to 62.6%. This is massive. So not only did the number of potential workers decline but the percentage of those working also declined Y/Y. Even assuming ADP is correct it signals job growth at ADP levels needs to double just to break even, much less catch up.

Fri, 01/10/2014 - 12:56 | 4319812 insanelysane
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Good thing the total population isn't increasing.  </sarc>

Sat, 01/11/2014 - 03:54 | 4322248 TheMerryPrankster
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and the total hours worked per worker decreasing.

Fri, 01/10/2014 - 12:01 | 4319549 csmith
csmith's picture

The Fed creates nothing real (only money). Therefore there is no real recovery. We have a "nominal" recovery...a recovery in name only.

Sat, 01/11/2014 - 09:21 | 4322440 lakecity55
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We entered a Depression in 2008 and despite all the .guv propaganda, it is getting worse. Unemployment is accelerating. The ACA is fulfilling its design- to destroy what's left of the economy. Next, EBT cards for everyone except Party Members.

I think soon we will enter the era of Baghdad Bob; I can hear the tanks rumbling now.......

Fri, 01/10/2014 - 12:05 | 4319570 The worst trader
The worst trader's picture

bullish! it must be because the vxx is down with the market!

Fri, 01/10/2014 - 12:06 | 4319574 cypherk1
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ZH is going mainstream. Headline on Drudge report. Nice work Tylers.

Fri, 01/10/2014 - 12:19 | 4319635 wisehiney
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drudge is lamestream?

Fri, 01/10/2014 - 12:26 | 4319660 jomama
jomama's picture

so i see drudge is still running his website from 15 years ago. that's about the last time i visited that guy since he piqued with the Monica Lewinsky scandal.

Fri, 01/10/2014 - 12:12 | 4319611 Handful of Dust
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As traffic slumps and teen-oriented stores struggle, retailers suffer worst holiday season since 2009

Fri, 01/10/2014 - 20:16 | 4321378 GotNuttin'todo
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Don't believe it for a minute. The bars were full!

Fri, 01/10/2014 - 12:14 | 4319616 TonyCoitus
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This may be the last buying opportunity before going to the moon.....for fuck's sake, BUY THE FUCKING DIP!

Fri, 01/10/2014 - 12:33 | 4319691 GrinandBearit
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If you are talk about Au, I agree.

I'm very envious of you... you got to bang Janet Leigh on a routine basis.

Fri, 01/10/2014 - 15:11 | 4320495 TonyCoitus
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Yes, Janet was quite the screamer!

Fri, 01/10/2014 - 18:04 | 4321038 markar
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but only in the shower

Fri, 01/10/2014 - 20:22 | 4321395 GotNuttin'todo
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Brutal! But accurate.

Fri, 01/10/2014 - 12:38 | 4319625 Cattender
Cattender's picture

this seems kind of Bad. i wonder why i was under the impression we were in a Recovery?

Fri, 01/10/2014 - 12:40 | 4319726 Cattender
Cattender's picture maybe the market will actually drop more than 100 points today..

Fri, 01/10/2014 - 12:16 | 4319627 luckylongshot
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and CNN says everything is going well!!!!!!!!!!!!!!!!....liars!.

Fri, 01/10/2014 - 12:29 | 4319676 jomama
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actually, the clip i just saw showed the anchor going after an Obama lackey about the jobless benefits saying:  why hasn't he done anything to spur investor confidense?  (of course they both know he can't do shit, he's just a puppet for the banksters, and does what he's told every step of the way). 

watching the guy squirm as if he thought he was getting softball questions was almost entertaining.  it would be if it weren't all so appallingly predictable.

Sat, 01/11/2014 - 09:16 | 4322433 lakecity55
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If you ever wondered what NAZI Germany was like, well, you are living in it now.

Just wait until the Russian Front get bad, then it will be even worse.

Fri, 01/10/2014 - 12:27 | 4319667 Franktastic
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I had become a displaced employee in 2010, job went to india, I was making 6 figures. I have not worked on the books since then, by design. I am not paying into this criminal administration (been that way since 1933) I will do what ever it takes to not give them a nickel of my money or labor, am sick and tired of the kings and queens on this planet. Time to throw the trash out and give the planet back to the people. I am sure most that are not working may be thinking along the same lines....enough of this crap and pretend we are your friend and here to protect our asses.  this shit has got to go!


I am calling for Civil Disobedience

Withholding payment of taxes is one of the quickest methods of overthrowing a government
Mahatma Gandhi

Fri, 01/10/2014 - 18:17 | 4321063 BeerMe
BeerMe's picture

Yep.  Start working under the table.  Quit sending checks to the clowns.

Fri, 01/10/2014 - 12:29 | 4319677 Franktastic
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The only thing that EVER changes tyranny that has been masquerading as the savior of society is to overthrow the masqueraders once and for all. So long as you all think you can play their game based on their rules depending on their system, the only guarantee is that you will LOSE.

Fri, 01/10/2014 - 12:31 | 4319682 GrinandBearit
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Fri, 01/10/2014 - 12:31 | 4319683 walküre
walküre's picture

Greece unemployment dropped to 4% with a labor participation rate of 25%.

What is labor? Are people pushing paper sucking on the public teet considered "labor"? I'm afraid so.

The private sector is in no state to support this behemoth of government and public service they've created.

True labor is already working off the reservation.

Fri, 01/10/2014 - 12:37 | 4319715 insanelysane
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The gov better raise minimum wage because we the number of unemployed exponentially increasing the actual market wage for unskilled labor is approaching $2/hour.  Unleash the kraken that is unlimited immigration.

Fri, 01/10/2014 - 12:48 | 4319776 jomama
jomama's picture

from kitco:

“It was a clearly weak number in terms of creating jobs – only a few compared to the consensus,” said Robin Bhar, metals analyst with Societe Generale. “That was bearish for the economy, bearish for the dollar and therefore positive for gold. So we’ve seen gold spike higher.”

Still, some might be surprised gold did not jump more than it did.

“Muddying the waters is the unemployment rate, which fell…,” Bhar said. “So it’s puzzling as to what the market will take from this report. It’s a very mixed report.”


I'm finally getting the feeling that we are approaching the end of this fantastic charade.  but who the fuck knows.

Fri, 01/10/2014 - 12:51 | 4319792 Judge Crater
Judge Crater's picture

In 1978, there were still plenty of households where husbands worked and wives took care of the kids.  Back then, just before the prime rate started its ascent  to the stratosphere thanks to Fed chair Volcker's ruinous monetary policies, there was a viable middle class.  Most 9-5 jobs came with health insurance and defined pension plans.  Prices for everyday items were low (gasoline was 60 cents a gallon), the taxload was much less, credit card interest rates were 12% and housing costs had just started going up.  So, one wage earner in the family was enough in most parts of the country.  Now, both husband and wife have to work to meet living expenses, so every potential worker wants to be in the workforce.  The problem now is that 30 years of offshoring jobs and of getting rid of defined pensions creates a situation where older people without company pensions work until they drop and many of the jobs we still have pay chump change wages. 

Fri, 01/10/2014 - 14:01 | 4320175 MeBizarro
MeBizarro's picture

Yup and we are returning to the natural order of things although albeit with much longer life spans.  More and more elderly will work until they either die or are physically/mentally incapiated and until to hold employment. 

When you actually get past the participation issues and into the actuarial numbers, it is possible to make SSI sustainable although SSI disability is another issue.  What isn't an easy fix is Medicare and assisted elderly living facilities costs which are Medicaid's single biggest expenditure and continuning to mount. 

Fri, 01/10/2014 - 13:01 | 4319840 boeing747
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HurryRead will make sure checks will be sent out on time.

Fri, 01/10/2014 - 13:01 | 4319844 rsnoble
rsnoble's picture

And Obamas spouting the new 'end poverty' program today.  Worthless mofo. As they all and were are.

Sat, 01/11/2014 - 09:12 | 4322429 lakecity55
lakecity55's picture

I bet the only thing he is good for is blowing reggie's flute.

Fri, 01/10/2014 - 13:12 | 4319848 knowshitsurelock
knowshitsurelock's picture

NO, no NO !!!   The only way out of this mess is to turn up the printing press, destroy savings and investment, steal all of the pension funds, decimate all asset classes, kill the job market and put everyone on subsidized subsistence entitlements.

Then, with everyone in poverty and doing nothing, you will have a level playing field.

Sat, 01/11/2014 - 09:11 | 4322428 lakecity55
lakecity55's picture

Yes, pure soviet socialism at last!

Fri, 01/10/2014 - 13:08 | 4319879 The Dismalist
The Dismalist's picture

More evidence that we've never actually recovered from the 'Great Recession,' just hit bottom and then started a pattern of tepid and iregular growth, apparently better known as 'Winning the Future.' Yay.

Sat, 01/11/2014 - 03:48 | 4322243 TheMerryPrankster
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I prefer to call it Bernanke's Depression, since he was the expert on economic depression who managed to create this mess with his comrades in arms.

Besides nobody even remembers who alan Greenspan is anymore, you'd think he was dead from his book sales.

Alan Greenspan raped the country for decades and then it collapsed and not a single Fed economist saw it coming. and these assholes are in charge of fixing what they don't understand.

we are boned.....

Fri, 01/10/2014 - 13:18 | 4319935 kchrisc
kchrisc's picture

The above chart is the best to show sheeple that that funny gut feeling they have is very real.

"Yeah, unemployment is 6.7%, unless you are looking for a job, that is."

Fri, 01/10/2014 - 13:18 | 4319939 ThisIsBob
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Is it fair to conclude that all the Fed's horses and all the Fed's men have saved and enriched the banks and their boyz, and nothing else?

Sat, 01/11/2014 - 03:45 | 4322240 TheMerryPrankster
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Humpty Dumpty took a shit on the housing market and all the kings men can't seem to put it back together again.

That could be the stench that has enveloped our economy or it could be the rotting corpse of liberty buried in Washington D.C. that offends the senses.

Fri, 01/10/2014 - 13:22 | 4319957 shepherd
shepherd's picture

The labor force participation rate of men has been falling since the 1950s where it was over 90%.

It doesn't seem to be a good indicator of anything.

Fri, 01/10/2014 - 20:21 | 4321390 GotNuttin'todo
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It does seem to indicate why there is a severe shortage of private fishing holes.

Fri, 01/10/2014 - 22:02 | 4321618 Wilcox1
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Heh, and that explains why there's no fish in 'em either.  I been slippin' in for awhile.  

Fri, 01/10/2014 - 13:35 | 4320025 Spungo
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Something is very wrong. One of my silver stocks is up 6% today. Did China declare war on Japan or something?

Fri, 01/10/2014 - 13:43 | 4320073 Van Halen
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Anyone who dares speak of the U-6 will be reported to a government official for retraining.

Do NOT follow this link or you will be banned from the site!