One Million People Dropped Out Of Labor Force In April: Participation Rate Plummets To Lowest Since 1978

Tyler Durden's picture

And so the BLS is back to its old data fudging, because while the Establishment Survey job number was a whopper, and the biggest monthly addition since January 2012, the Household Survey showed an actual decline of 73K jobs. What is much worse, is that the reason the unemployment rate tumbled is well-known: it was entirely due to the number of Americans dropping out of the labor force. To wit, the labor force participation rate crashed from 63.2% to 62.8%, trying for lowest since January 1978! And why did it crash so much - because the number of people not in the labor force soared to 92 million, the second highest monthly increase ever, or 988K, only 'better' than January 2012 which curiously was the one month when the establishment survey reported a 360K "increase" in jobs. 

End result: the number out of the labor force is now an all time high 92 million, and the labor force tumbled by 800K to 155.4 million from 156.2 million as the delayed effect of the extended jobless benefits ending finally hits. What is most amusing is that the "persons who currently want a job" was unchanged at 6,146K - even the BLS said it was "puzzled why so many unemployed people are not looking for jobs." We have some ideas, and no, they don't include the addition of 234K "birth/death adjustment" jobs.

Participation Rate:

People not in the labor force:

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Haus-Targaryen's picture


Shocker's picture

1 Million dropped out of the market, wow that is sad

Job Situation:



Haus-Targaryen's picture

Who cares!?  



Pretty soon they will all be drafted to go fight the Russians and will be employed again. 

Xibalba's picture

even the .01% are blaming the fed "He blamed the expanding inequality between the haves and the have-nots on the effect of the Federal Reserve's stimulus program, which inflated asset values."

eclectic syncretist's picture

If this trend continues we'll eventually have 0% unemployment, but no one with a job!  WTF is up with that??!!!

GetZeeGold's picture



It's hope and change silly.


Too much more of this.....and we're all gonna die.

NoDebt's picture

I'm sorry, but the enormity of a MILLION people leaving the work force in a single month just hit me.  A MILLION people.

I sure hope every one of those 288K people who got a job enjoy paying for the 4 others they're going to have to carry on their backs.  No doubt all of those 288K jobs are nice 6-figure jobs with bennies, though.  Because if they were mostly McWage jobs, the math might not work out so well. 

Keyser's picture

And all he talking heads can spew is what a monster 288K number was added to the workforce... Pathetic... 


MillionDollarBonus_'s picture

This jobs number is just spectacular! Are you serious? 288k JOBS? This is frikin awesome! What a slap in the face for all the naysayers that didn't believe in the recovery! Stocks are soaring, gold and silver have been flushed down the toilet, and every major economic indicator is indicating sunny days for the US economy. If this isn't enough to make ZH cynics and greasy golbugz cry, then I'll be damned.

nope-1004's picture

Tears of laughter, my blind friend.  1 million.  Wow.  Just 'frikin' wow.



Slave's picture

I know how we can get everybody working the draft and let's go FUCK UP RUSSIA!!!!

toady's picture

Tune in, turn on, drop out.

Four chan's picture

santellis jumping around in a cave is a good analogy.

rubiconsolutions's picture

The BLS and the way they put these bogus numbers out reminds me of what James Angleton, former CIA offical said:

"Deception is a state of mind and the mind of the State”

daveO's picture

They time the largest phony employment gains with the biggest dropout months. if the market(yea, what market?) was paying attention to this, it wound be down a couple of hundred. 

Blano's picture

Where the hell you been?  I actually miss your schtick.

Haus-Targaryen's picture

I would love to get a beer with you. 

earnyermoney's picture

MillionDollarBonus_ hmm. That aproximates the earnings of the Nobel Peace Prize. Maybe you're Paul "Freddie" Krugman hidding behind a clever handle. If not, I think you do a bang up job providing insight into the thoughts of that weasel. 

Georgia_Boy's picture

Yeah, my thoughts exactly. What are you all so mad about ... it's all good right? Now that we have the ACA subsidies to add to our other subsidies, more people can choose not to work. Don't be so backwards, it's a good thing. Work to live, not live to work. Turn on the cable, catch up with Facebook, it sure beats going to the office!

old naughty's picture

Are they trying to smoke us, that outsourcing didn't matter.

Bad to 36 years ago, before outsourcing even started.


eclectic syncretist's picture

The writing is on the wall for anyone who cares to read it.  The FedGov is fudging numbers in order to justify a tightening monetary policy.  This will bring the markets down and bolster safe haven investments.  It will hurt a lot of people, as it always has and always will.  But it will line the pockets of the string holders, and that's what our FedGov is all about, after all.

Oh regional Indian's picture

So Now here is another classification, like the mobile ready wkfc....

The String Pullers and the Bag holders.

And then the Eric Holders but that is a whole 'nother story...


toady's picture

I wonder what the unemployment number is for working age, not just those "actively seeking work". It's amazing what they can do with symantics.

Blano's picture

It's election season already.

what's that smell's picture

why do you hate the jobless so much?

why don't you go kick the dog for dessert?

GetZeeGold's picture



Did you get lost on your way to Huffpo?

SWCroaker's picture

Maybe he hates the situation, for being created by a broken system, one that makes victims of both employeed and unemployeed?

V in PA's picture

Two weeks and 6 days... I'm going with the HuffPo troll theory.

-.-'s picture



Okay...who the fuck is this emotionally unbalanced yokel? God damn, this site needs a "cleansing" nearly as bad as Christie's colon.

Drifter's picture

So stop reporting the fake jobs numbers, just report the labor participation number.

Reporting fake fudged fantasy numbers then saying how ridiculous they are is getting a little boring.

While you're at it stop reporting new stock market highs then saying how rigged and manipulated markets are.

SeattleBruce's picture

While you're at it - don't say anything ever, and shut down ZH, 'cause it's all meaningless!

SoDamnMad's picture

It's the new math they are teaching in the schools and colleges.

Common_Cents22's picture

But the 0% will have to pay their fair share!

yogibear's picture

"but no one with a job! "

Except banksters and those on Wall Street.

Why produce anything anymore? Just print money and hand it to other countries for items. 

The other countries end up with a lot of worthless paper.

SeattleBruce's picture

Til they say, "No moar!", and then the Murikan Dream will be No Moar.

pods's picture

Of the 280k jobs, 83% are from BD adjustment.

1 million left the labor force.

Participation rate @1978 levels.



tarsubil's picture

You don't get it. This is like if you're a male and the population of men around you starts pairing up with each other. It is easier for you to get a date with a chick. Since fewer people want to work, it is easier to find a job. This is great for our society. Believe me.

pods's picture

My fear is those 1 million still gotta eat and the government seems to print what it needs to feed them.


tarsubil's picture

Let them eat fiat! I got it! Chocolate flavored Federal Reserve Notes! Genius!

V in PA's picture

But Chocolate flavoring has value. Who is gonna pay for that?

tarsubil's picture

Artificial flavoring made from toxic waste! You'll get paid for disposal/flavoring notes! Win-win!

Overfed's picture

Hey, it worked for fertilizer companies. They actually get municipalities to pay for their toxic waste flourine compounds and put it in the drinking water.

Georgia_Boy's picture

Heh, maybe once we can't afford paper anymore, we'll have soylent Federal Reserve notes.

pods's picture

What about free Candy Crush vouchers?  Farmville credits?

If we keep this up we might get our Chocolate rations increased to 20 grams (from 30 grams).


what's that smell's picture

or having sex with pregnant women as a form of birth control.

El Oregonian's picture

Wow, I'll equate this to the American Motors 1970's Pacer automobile! What!?! you don't remember them? Well, as hideous as they looked back then it's no wonder you'd never want to be forced to revisit those times again.

Headbanger's picture

Yeah but none of em will pass the physical !

Haus-Targaryen's picture

Will the phyiscal be like the ECB stress tests? 

The bar is

|---------------------------------------| high. 

Average is

|-----------------------------------| high.

::Shit, everyone is going to fail.::

Then, 2 weeks before the exam, lower the bar to

|------------------------| high. 


Per new state of the art physical fitness tests, members of the American Military are the most physically fit in the world.  Destroying the evil Communist Russians Soveits will be no problem for out fit young men, women, and its* in uniform. 

(* Please see "67 Facebook Gender Classifications." )