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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Fri, 09/05/2014 - 09:06 | 5183945 Hal n back
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household survey shows only 16k more people working in August and birth death plus 102

Fri, 09/05/2014 - 09:10 | 5183983 GetZeeGold
GetZeeGold's picture



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

Fri, 09/05/2014 - 09:14 | 5184013 Sudden Debt
Sudden Debt's picture

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


Fri, 09/05/2014 - 09:23 | 5184062 Headbanger
Headbanger's picture

CNBS trying not to look like idiots they are:

Fri, 09/05/2014 - 09:53 | 5184180 Latina Lover
Latina Lover's picture

Memo from Fed Reserve to Obama:

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

Fri, 09/05/2014 - 10:15 | 5184301 CuttingEdge
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.

Fri, 09/05/2014 - 10:48 | 5184459 Soul Glow
Soul Glow's picture

Fighting Russia would be today's Little Bighorn.

Fri, 09/05/2014 - 11:05 | 5184571 aminorex
aminorex's picture

More like Normandy.

Fri, 09/05/2014 - 15:21 | 5185971 froze25
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.

Fri, 09/05/2014 - 09:58 | 5184203 rccalhoun
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!

Fri, 09/05/2014 - 10:09 | 5184271 813kml
813kml's picture

The Beatles are better than ever...

Fri, 09/05/2014 - 18:22 | 5186695 Equality 7-25-1
Fri, 09/05/2014 - 12:16 | 5185021 Jannn
Fri, 09/05/2014 - 09:17 | 5184038 Divided States ...
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.

Fri, 09/05/2014 - 09:24 | 5184070 LawsofPhysics
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.

Fri, 09/05/2014 - 09:34 | 5184111 Grande Tetons
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. 

Fri, 09/05/2014 - 09:40 | 5184132 Chupacabra-322
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.

Fri, 09/05/2014 - 09:43 | 5184148 LawsofPhysics
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.

Fri, 09/05/2014 - 09:56 | 5184196 Chupacabra-322
Chupacabra-322's picture

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

Fri, 09/05/2014 - 10:42 | 5184432 Son of Loki
Son of Loki's picture

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

Fri, 09/05/2014 - 09:35 | 5184114 Divided States ...
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.

Fri, 09/05/2014 - 09:38 | 5184125 Grande Tetons
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. 

Fri, 09/05/2014 - 09:53 | 5184185 toady
toady's picture

Do you keep it in a jar by the door?

Fri, 09/05/2014 - 09:41 | 5184137 LawsofPhysics
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.

Fri, 09/05/2014 - 09:18 | 5184040 eclectic syncretist
eclectic syncretist's picture

By now everybody is starting to get pissed at BO

Fri, 09/05/2014 - 11:06 | 5184584 aminorex
aminorex's picture

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

Fri, 09/05/2014 - 09:15 | 5184014 Raoul_Luke
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.

Fri, 09/05/2014 - 09:36 | 5184088 Blues Traveler
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.

Fri, 09/05/2014 - 10:19 | 5184318 The Wizard
The Wizard's picture

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

Fri, 09/05/2014 - 10:23 | 5184332 The Wizard
The Wizard's picture

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

Fri, 09/05/2014 - 09:15 | 5184025 max2205
max2205's picture

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

Fri, 09/05/2014 - 09:23 | 5184061 himaroid
himaroid's picture

Now up to 12,000+

Fri, 09/05/2014 - 09:32 | 5184103 GetZeeGold
GetZeeGold's picture



As opposed to 92.3 Million?

Fri, 09/05/2014 - 09:47 | 5184162 Oldwood
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.

Fri, 09/05/2014 - 10:35 | 5184383 toady
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.

Fri, 09/05/2014 - 10:48 | 5184470 boattrash
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...

Fri, 09/05/2014 - 09:55 | 5184190 Hal n back
Hal n back's picture

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

Fri, 09/05/2014 - 09:19 | 5184048 LawsofPhysics
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.

Fri, 09/05/2014 - 09:27 | 5184080 rubiconsolutions
rubiconsolutions's picture

Unemployment numbers are calculated using common corpse math.

Fri, 09/05/2014 - 09:06 | 5183946 NOTW777
NOTW777's picture

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

Fri, 09/05/2014 - 09:08 | 5183967 Dr. Engali
Dr. Engali's picture

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

Fri, 09/05/2014 - 09:17 | 5184039 intric8
intric8's picture

tribal chicanery

Fri, 09/05/2014 - 09:18 | 5184045 ShrNfr
ShrNfr's picture

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

Fri, 09/05/2014 - 09:36 | 5184120 GetZeeGold
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.

Fri, 09/05/2014 - 10:29 | 5184352 yogibear
yogibear's picture

" iSheeple"

Wait in line for days to get F'd.

Fri, 09/05/2014 - 10:02 | 5184233 Oldwood
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.

Fri, 09/05/2014 - 09:07 | 5183950 Divided States ...
Divided States of America's picture

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

Fri, 09/05/2014 - 09:10 | 5183973 Grande Tetons
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. 

Fri, 09/05/2014 - 09:17 | 5184035 LawsofPhysics
LawsofPhysics's picture

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

Fri, 09/05/2014 - 09:23 | 5184063 intric8
intric8's picture

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

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