Americans Not In The Labor Force Rise To Record 93.8 Million, Participation Rate At 1977 Level

Tyler Durden's picture

While the Fed is digesting what the X-13 Arima seasonally adjusted payrolls number means for the future of US interest rates, the devastation of the US labor force continues.

In what was an "modestly" unpleasant July payrolls report, yet somewhat better than June's flagrant disappointment, the fact is that the number of Americans not in the labor force rose once again, this time by 144,000 to a record 93,770,000 million, with the result a participation rate of 62.6% which remains at a level more indicative of the September 1977 economy.


End result: with the civilian employment to population ratio flat from last month's 59.3%, one can once again easily discren on the chart below why there will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time, or - at worst - hike by 25 bps just so it can, like BOJ in 2000 and the ECB in 2011, cut promptly thereafter and/or unleash QE4.

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LawsofPhysics's picture

That which cannot be sustained, won't be, no matter how much everyone cries and whines about it...

interesting times.


Shocker's picture

93 million, that pretty much expains the direction we are heading

Layoff List:


Occident Mortal's picture

When the Fed cuts the USD will soar and there will be a global liquidity crunch as capital flees the EM.

VinceFostersGhost's picture



93.8 Million is 5.3%?


I think we need to take anther census!

MillionDollarBonus_'s picture

Working less isn't always a bad thing. Many economists predict that one day we will reach an economic singularity in which people will no longer need to work, and resources will be provided to us at no cost by an infinitely efficient market. Maybe this is a sign that we are at the beginning of such a singularity?

LawsofPhysics's picture

LOL!!! classic MDB, comedy gold!!!

Headbanger's picture

Yes, MDB_,  All resources will be provided to us..

Through ducts:

NoDebt's picture

The labor force participation rate shows how much liberals care.  The more people they can support who are not working, the more that shows they care about them.  The dwindling number people left working to support them (at decreasing wage levels in multiple part time jobs), however.... fuck you, back below decks and keep pulling on that oar.

Boris Alatovkrap's picture

Government dependency is precursor for is become slave and serf. First statist authority is coddle masses and then is pull out whip.

kralizec's picture

Hell no, no Devo "whip it"...keep that zipped!

Bananamerican's picture

Headbanger, what's that clip from?

Oh, and MDB has more greens than reds...another sign of the apocalypse

DeProgrammed's picture

Agreed! The downvotes show the lack of understanding of subtle farcical humor.

What's scary is that there are undoubtedly people who actually follow these lines of thought.

Bill of Rights's picture

Oh look its one of the Hitler Youth folks....

wisefool's picture

I see it the opposite way. Last night they asked Dr. Ben Carson if we need to bring waterboarding back.

no work, no income tax. no waterboarding people who did not have WMD, neo-cons don't "work" for free

Bill of Rights's picture

The fuck did I just watch? lol holy shit...

homebody's picture

Maybe you should read the Time Machine - some did not have to work.

NoVa's picture

Society like in Woodie Allen's movie Sleeper?

Where's the ogasmatron?

Midas's picture

O-gasmatron is what happens to Chris Matthews when B. H. Obama enters the room.

TeamDepends's picture

Gosh, wouldn't that put the TRUE unemployment number at, dunno, 35% or so?

madcows's picture

Nope.  30 out of that 35% doesn't want to work.  They're retired or housewives or students.  They don't count.

swmnguy's picture

Check out "Shadowstats" online.  The TRUE number, U6 the way it used to be figured before Reagan and then Clinton jimmied the formula, is around 23% (or it was the last time I looked at the site).  No wonder both Reagan and Clinton did such a great job reducing Unemployment.

LawsofPhysics's picture

So, you think a rate cut will strengthen the FRN?

LMFAO!!!  I think you have that backwards.  What part of race to the bottom don't you understand?

Consuelo's picture

The world is a slightly different place than it was in 2008.

Sudden Debt's picture

Yep, it's become the ultimate sollution to push everybody in that bar on the graph for every economic problem there is.

I wonder how Obama will gloat once more when he explains how he made unemployment extinct by being the best president ever on this planet.

TeamDepends's picture

Hey, one of the wheels just fell off!!! Naaaah, well okay, we'll revise it back up to four next month.

mayhem_korner's picture



In September 1977, the economy was booming because of skyrocketing demand for...(William Wallace HOLD, HOLD)...Star Wars figurines.

slaughterer's picture

American workforce is getting as lazy and unproductive as the Central European "Social democratic" workforce, which sees no reason to get out of the generous social security net for the unemployed. 

Sudden Debt's picture

You should see how the south is doing...

A while back I was at city hall for some paperwork and after 1 hour while nothing happened, I was called in front to probalby one of the most demotivated people on this planet. And the way she talked to me, I couldn't help myself to answer her: Gee... If they would just invest a bit of money in a good online app, you'd all be fired and I could do this shit in 5 minutes from my sofa at home.

She just smiled at me and I'm still waiting for that paperwork to get the right stamps but what I'm saying is: IMAGINE IF ALL THE UNPRODUCTIVE MADE UP JOBS WOULD BE GONE TO!

We'd be at 80% unemployment right now!

Wahine's picture

I had the pleasant surprise of being able to register my children for preschool through a very well designed, efficient website this year instead of heading downtown to wait for someone to look at my id and confirm that all my info was still the same as it was last year.  3 story building with god knows how many employees completely shut down.

rejected's picture

A six story building, the corporation I slave for, used to have hundreds of teaming employees.

It now has 1....


Deathrips's picture

In the new economy there can only be one. Only status quo collectives allowed.



EhKnowKneeMass's picture

And there is one, and might I say, only one, presidential candidate who has identified the correct solution to this vexing problem--the mighty, the clairvoyant, the august, the ultimate leader Jeb Bush.

Jeb Bush says "'mericans need to work longer hours to earn more"--

Bush/Cheney 2016

Abitdodgie's picture

Obama has done a wonderfull job helping nearly 94 million people in America not have to work , how you ask? By getting the rest of the world to be our bitches and working for what will be wortless pices of paper, enjoy the good times and thanks the rest of the world for been so stupid , now get to work I am going playing golf.

Kprime's picture

Man hanging over cliff,

"i gotcha"

"I gotcha"

" I gotcha"



Oh regional Indian's picture

Well, looks like America is a rather relaxed place to be.

Real un-employment: probably closer to 30%

Pass me the beer, the bong and the bullshit will ya?

847328_3527's picture

When the number of people not working reaches 100 million, I think the BLS will publish a jobles rate of near a low of 2%.


It's "paradoxical!"

Oh regional Indian's picture

It's the new math, better than the old math...

PleasedToMeatYou's picture

...and the shotguns sings the song!!!!!!!!

------- and we won't get fooled again!  Oh, no! 

Oh regional Indian's picture

Pete went deaf trying to get the message out...

Kprime's picture

does the new 2+2 make a bigger 4?

LawsofPhysics's picture

Heading back to Brazil later this month ORI, just wait, Americans will still be arguing over stupid shit even after San Diego turns into Rio or Sao Paulo.


Oh regional Indian's picture

Nice LoP, the EM exchange rate is going to get reallllly good for the dollah...and then it won't, all of a sudden.

Enjoy your trip....

csmith's picture

There is an ARMY of young 1099ers out there who are not counted in the labor force.

Rainman's picture

wait ....drug dealers and pimps get 1099s ?

dontgoforit's picture

One day the bottom will drop out - Bob Marley.

drchris's picture

Just think, with a little less work we can be at full employment.