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Labor Participation Rate Remains At 37 Year Low As 94.5 Million Remains Outside The Labor Force
In another sign that the labor market slack, at least from the Fed's perspective, is now reaching a peak, the Household survey reported that while the civilian labor force rose by over 300K in October, the number of people not in the labor force actually declined by 97K to 94.5MM (as those employed rose by 320K), following an exodus from the labor force of over half a million in September.
Despite this headline improvement, however, the participation rate remained at 62.4%, same as the prior month, and at a level last seen in 1977.
Elsewhere, the civilian employment to population ratio also remained rather downbeat at 59.3%, a modest increase from last month's 59.2% and virtually unchanged from the 59.2% also reported one year ago.
Finally, while there are many explanations why the participation rate remains so low (and continues to decline) most notably from the Fed who said that people "just don't want a job", the reality is that 94.5 million Americans either no longer have an interest or desire to look for a job.
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94 Million... that should say something
Layoff List: http://www.dailyjobcuts.com
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unemployment rate is really around 25%
This is simple... a lot of boomer wife's joined the work force in the early 80s and have left as they went over 50 years old in 2000-2007.
Taxes workplace bs and commutes. ...they just said fuck it.....now the guys are going on early soc sec before it goes bust or the rules change.
94.5 Million Remains Outside The Labor Force
Isn't that like almost a third of the country?
Yeah.....unemployment is 5%.....uh huh.
That is flat out wrong. Statistics show older people continuing to work and young people coming out of college are unable to get jobs.
tmosley above is absolutely correct, and your comment is absolutely wrong. The 55+ age group is the one in the workplace that has grown the most since 2007. It has outpaced the 'breadwinners', for sure.
Older workers are continuing to work because their savings are going to shit in this economy. Savings in the bank earns less than nothing nowadays (which, on a tangent, is why Ben Bernake et al are responsible for impoverishing millions upon millions of seniors in the USA). And with the real rate of inflation around 8-10%, their savings has been eaten away for years, their purchasing power has been flushed down the toilet. Meanwhile, any paper gains in the stock market remain just that, because their 401K plans are worth nothing until at least 65 years old, and only really worth tapping into at 70+ (72, I think, nowadays). If they want those paper gains early, the IRS takes away a measurable portion. So these folks are still captive and must remain, or re-enter, the workforce to make ends meet.
While I agree, the unemplyment rate figures are a joke, you have to be careful with the Labor Force Participation numbers. First of all, you can't take the US population (325 MM) and extapolate from that the 95MM paople are out of work. The LFP number applies to people age 15-64, of which there are about 204 MM. That puts the number of people not working at 76 MM. Still very high. Also, the US population since 2000 has increased by 40 MM people, so the graph showing a rising number of people not working isn't as dramatic when you factor in the increasing number of people in the pool. I think the bigger concern is still the fact that people are taking jobs that don't pay as well, and working part time when they want full time. Things are not well.
Bullish for the FSA.
Why work.
So you can pay taxes so the FSA doesn't have to work.
do we get a party at 100 Million?
That's OK, I can carry a few more of them on my back. Go on, chuck another one up there.
I lost five pounds this month. Just so it would be easier for you to carry me a little longer.
You do not have to thank me--we are in this together.
Shouldn't you be working on the TPS report.
...and wearing more pieces of Flair.
PC load letter? What the fuck does that mean?
"I lost five pounds this month"
That's only $7.50, that's not too bad
Now here's a good reason to raise rates!
hey guys, check out gartman. lulz
The Fed said, people just don't want income.
And what is really cruel is that many have no intent to become employed, so the rest of us pick up their costs.
This is another sign of just how weak the US economy really is.
one third of the country and they vote. Hillary 2016! /s/
Did they create a new category for unemployed people beyond "not looking for a job anymore"? Gotta start stuffing them somewhere.
1/3 of the 300 million can't work, those below 18 years old and those over 65. That leaves 100 million people working to support 200 million people lolololol only in today's America sadly. It's an easy fix, stop printing money.
Whoo hoo!
The economy is doing so well that more folks can retire, or stay at home with children or elderly parents, or stay in school.
The 94.5 million unemployed folks includes my mother. She's 93, wheelchair-bound, lives in a nursing home. It includes my stay-at-home sister-in-law who homeschools her children. It includes my two nieces, ages 17 and 19, who are full-time students. It includes me - I'm a stay at home spouse. Next year it will include my husband. The stock market has done so well he can retire at age 61. Even better, the Affordable Care Act ensures that we can get health insurance until we're old enough for Medicare, so my husband doesn't have to stay employed in order to guarantee that we have health coverage.
I love upbeat articles spurred by the economic recovery.
^^ The above comment brought to you by the letters MDB, and sponsored by The Onion.