Labor Participation Rate Drops To Lowest Since 1978; People Not In Labor Force Rise To Record 92.3 Million

Tyler Durden's picture

It is almost as if the Fed warned us this would happen. In a note released yesterday, a Fed working paper titled "Labor Force Participation: Recent Developments and Future Prospects", looked at the US labor force and concluded that "while we see some of the current low level of the participation rate as indicative of labor market slack, we do not expect the participation rate to show a substantial increase from current levels as labor market conditions continue to improve." But don't blame it on the greatest recession/depression since 1929: "our overall assessment is that much - but not all - of the decline in the labor force participation rate since 2007 is structural in nature."

Well that's very odd, because it was only two months ago that the Census wrote the following: "Many older workers managed to stay employed during the recession; in fact, the population in age groups 65 and over were the only ones not to see a decline in the employment share from 2005 to 2010 (Figure 3-25)... Remaining employed and delaying retirement was one way of lessening the impact of the stock market decline and subsequent loss in retirement savings."

So yeah... sounds like most of the decline in the participation rate is not structural in nature and is merely a response to what everyone but the 1% sees as the biggest - and ongoing - economic devastation perhaps in history, papered over conveniently for the 1% with trillions in liquidity injections.

In any event, no matter how you spin it, today's data was bad: because not only did the headline data disappoint, the labor force participation rate dropped once again to 62.8% from 62.9%, matching the lowest since 1978, as a result of the people not in labor force rising once again, and hitting a new all time high record of 92,269,000, up 268,000 from the prior month. In fact, in August the number of people not in the labor force increased by nearly double the number of people who found jobs, which as we reported previously, was only 142K.


Putting it another way, since the start of the depression in December 2007, the number of people not in the labor force has increased by 13.0 million. The number of jobs added: 768,000.

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Hal n back's picture

household survey shows only 16k more people working in August and birth death plus 102

GetZeeGold's picture



Oh sh1t......let's hope Joe Kernen doesn't find out this!

Sudden Debt's picture

Relax, we've just returned to the age where woman didn't have to work...


Latina Lover's picture

Memo from Fed Reserve to Obama:

Pull your dick out of Reggie's ass and get to work:

CuttingEdge's picture

Its a case of starting a war via proxy somewhere far away on an inferior opponent, not getting too involved until its well under way, and then pile in the conscripts to give the good old "US cavalry to the rescue" effect - that one that hasn't worked out too well since 1941. Oh, and like you say, substantial body bags to get that non participation rate down...

...and they pick Russia???

Go very long body bags.

Soul Glow's picture

Fighting Russia would be today's Little Bighorn.

froze25's picture

That fact is the fighting men for the most part do not want to follow Obama.  The people that would support the fighting men do not want to follow Obama.

rccalhoun's picture

the market has alaways been to try and judge human/machine behavior to a given set of the past those may have coorelated to economic data....currently it appears to coorelate to the reaction of people/machines to fed and government policy.   there is no law that says EPS guides a market.  i don't really understand these coorelations, so I don't play too heavily.....underperforming most, but making a modest profit.  this isn't rocket science; its much more difficult---trying to guess at humnan behavior.   good luck!

Divided States of America's picture

And Im sure a lot of those women are reporting they are employed via self employed/consultancy and selling Fraud-a-life healthcare products to clueless sheeps.

LawsofPhysics's picture

Are you talkling about "Advocare"?  I recently saw one of their company pitches.  Based on the Amway model.

Yep, when bitches don't like the old ponzi, they always start a new one.  Some will be successful, most won't.

Grande Tetons's picture

I think there will be alot of scams developed to rip off retiring boomers.  

The Fed has been a great role model. 

Chupacabra-322's picture

@ Grande Tetons,

Yea, and its called Ebola. Good way these Pure Evil Psycopath Elite can scrub 92 million + off the face of the earth.

LawsofPhysics's picture

(92,000,000 / 7,000,000,000 = 0.013 x 100 = 1.3 %)  loss of 1.3 % of the world population?  Meh, think bigger.

Chupacabra-322's picture

I just crapped my pants. Did ypu figure in the loss of like via Nuclear exchange?

Son of Loki's picture

"Trickle Down Fraud," is the new buzz phrase .... it's all part of modern economics here in merika.

Divided States of America's picture

I know there is a new defying aging cream called Nerium that is gaining traction amongst the sheeps...I know sales are booming right now.

Age defying products surely definitely didnt help Joan Rivers face or her health.

Grande Tetons's picture

I rub Nerium on my change purse every morning. I am pleased to report that I  have the nutsack of an 18 year old. 

toady's picture

Do you keep it in a jar by the door?

LawsofPhysics's picture

There is some okay science behind Advocare's nutrition products.  In addition, they seem to be targeting and being sold by older (have money) people who are excercise and health-nuts.  May have some staying power, still just another ponzi, but everything is when it comes to humans.  It is and always has been about picking the ones that will grow and selling just before they "correct" as nothing lasts forever.

aminorex's picture

They still have to work (even Grandma, now) they just can't.

Raoul_Luke's picture

I don't see how we can get "gains" month after month from birth/death when the ratio of businesses opened to businesses closed remains under water.  I mean, I understand how the numbers could potentially work out that way, but it just doesn't seem like the odds would favor it.

Blues Traveler's picture

Take symantics, throw in greed, lies, corruption, indifference, an agenda and remove the human heart. Part time jobs is the driver, not career jobs, just meet monthly obligations w/no upside.   Obalo created the part time economy with oblundercare, at 29.5 hours, he doubled the amount of part time jobs positions.

The Wizard's picture

There are lies, damnable lies and there are statistics. (Benjamin Disraeli)

The Wizard's picture

But the unemployment rate is dropping. There are lies, damnable lies and there are statistics. (Benjamin Disraeli)

max2205's picture

10,000 baby boomers retiring per day adds up to a lot hitting these numbers

GetZeeGold's picture



As opposed to 92.3 Million?

Oldwood's picture

Why be greedy, why not just all of us "retire"? They want fucking dependents, lets give them some fucking dependents! They worry about a few minimum wage burger specialists picketing, lets show them some REAL hungry mouths to feed. These fuckers think they can make us pull their damned wagon, lets all just climb into the back for a while and they can see the "final solution" up front and personal like.

toady's picture

That's what, I believe, is happening. Sure, a lot is made of the 65+ crowd working at McDonald's, but those are only the ones stupid enough to not save.

On the other side, everyone over 40 who did save is cashing out and heading for the hills. I did, and I know at least 30 of the guys I used to work with did. Sure, more than half of them were retirement age, but at least 10 were 45-55, and either had rentals or hobby farms (or both, like me).

The system is fucked. Find something outside the system, or you'll be fucked too.

boattrash's picture

My dear ole dad, turns 78 this week, quit his job last year.

Reason: They told him he had to be paid by Electronic Deposit.

His reply: "No, I don't have to. I've been earning and receiving a pay-Check since I was 11 and I see no reason to change it now".

Their loss...

Hal n back's picture

10,000 more boomers taking medicare and social security each day but I bet many are not retiring.

LawsofPhysics's picture

Yep,  as more people fall from the middle class and find themselves poor.  They will do what poor folks do...   ...drink and fuck.

rubiconsolutions's picture

Unemployment numbers are calculated using common corpse math.

NOTW777's picture

how can any person breathing believe the MSM about the "booming" economy - we have a welfare state

Dr. Engali's picture

Roughly 38% of the iSheeple will believe anything this administration says. 

ShrNfr's picture

Not so oddly, that is Obama's approval rating from Gallup yesterday.

GetZeeGold's picture



I think I've just found my peeps......and we are quite a large number.


I'll organize them....and get back to you.

yogibear's picture

" iSheeple"

Wait in line for days to get F'd.

Oldwood's picture

If you still have a job and are making your rent payments, then you can assume everyone is just doing a little better than you and that you are the outlier. We only see macro when it is illustrated for us, something the media WILL NOT DO. For all of these fucks, the ends absolutely justify the means, even if millions die in the process. As it has always occurred in the past. History is useless for anything other than to maintain a grudge and seek revenge for real an imagined past wrongs. Historical facts are nothing more relative to most than random integers if they are not put into context. Politicians and the media try to pick and choose these "integers" to create their own history to promote their own agenda.

Divided States of America's picture

Labor Participation at its lows means Warfare Participation will soon be at its highs.

Grande Tetons's picture

True. However, after awhile there is no more meat on the carcuss to fead all the buzzards. Something will have to give. 

LawsofPhysics's picture

"unofficial" economic activity is at an all time high.  It's really that simple.  "Full faith and credit".

intric8's picture

we may soon see unemployed blacks fighting seagulls for a chicken bone on the boardwalk