Record 95.4 Million Americans Are No Longer In The Labor Force As 968,000 Exit In One Month

Tyler Durden's picture

In what was otherwise a mediocre jobs report, in which the establishment survey reported that a lower than expected 261K jobs were added to the post-Hurricane economy, the biggest surprise was not in the Establishment survey, but the household, where the unemployment rate tumbled once more, sliding to a new cycle low of 4.1%, for all the wrong reasons, because a quick look at the participation rate metrics showed that in October there was a sharp decline, with the labor force part. rate sliding from 63.1% to 62.7%, back to 4 decade lows...

... driven by one disturbing metric: the number of people who exited the labor force soared by a near record 968,000 in October - the third highest on record - pushing the total number of people not in the labor force to a record 95.385 million, as the civlian labor force shrunk by whopping 765,000 in one month.

This took place as the number of employed Americans declined by 484,000, however since the unemployment rate denominator dropped more, it translated into an actual decline in the unemployment rate!

So much for economist hopes that potential workers from the fringes are coming back to the labor force. Of course, the implication is even worse: with more slack being created in the form of workers who are leaving, not entering, the labor force, this creates a buffer for wage growth, and suggests that any hope for rapidly rising wages has once again been derailed.

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tmosley's picture

Crypto investors, tbh.

Mr Pink's picture

But...but....muh stock market and muh unemployment rate

Five Star's picture

for eveyone one person that has found a job since 2008, one person has retired and one person has left the workforce

ArkansasAngie's picture

What a complete crock.  No wonder people are pissed off.  No job for you ... ever.  To prove it ... we ain't gonna count you.

LawsofPhysics's picture

Yes, complete failure. But this is the natural outcome of eCONomic models that are built upon exponential growth forever in a biosphere with finite resources.

fuck 'em.

"Full Faith and Credit"

the socialization of PRIVATE losses continues...


Devils Advocate's picture

Why does anyone need to work, when you can just get rich owning assets!!!

Creepy_Azz_Crackaah's picture


Why work when you can have the gubmint point guns at working people, taking their income, giving it to you?

beemasters's picture

DrudgeReport headline now: "UNEMPLOYMENT RATE LOWEST SINCE 2000"


YUNOSELL's picture

"Let them eating falling-price electronics"

FireBrander's picture

I know one of those that exited.

>Family was paying through the nose for health insurance and child care for 3 kids.

>They ran the numbers, the wife stopped working, husband refuses all overtime.

>Family of 5 gets free Medicaid and no daycare costs.

>Net income wise, they now have more money to spend with just his income.

The "system" is getting what it rewards; not working...

The Management's picture

Among all the shit-posting - this is the REAL story!


It accounts for a lot of the population growth in the U.S. since 1990! - Better believe that a good chunk are people forced to train their replacements.

JuliaS's picture

Falling price electronics? I wish. My component costs for electrical engineering have been creeping up over the last 3 years. Many computer components are also climbing upward. The banks are printing well in excess of increasing industrial productivity. Even things that are supposed to be deflating aren't. And the Fed keeps complaining about not meeting inflation targets.

Meanwhile it costs me 4-5 times more to buy the same amount of food than 20 years ago, rent is 2x of what it was, gas 4x etc. And my official salary is only 20% higher than it was back in 1997, forcing me into side gigs, short term contracts, craigslist, ebay etc.

I go with George Carlin's school of economics: "When your needs aren't being met, drop some of your needs".

2Blondboys's picture

It is a factual statement. The issue is and has been for years that millions of working age are no longer working. I know many of working age that work off the books. So they retired, took early SS and are working for cash.

Additionally, many young people in school are not working. I believe working age is 16 and older. This bracket of those 16-21 I believe show the steepest decline of working. As an employer, this stat appears to be true. Many in college today live off their loans. They do not work. If they do it is for cash.

The underground economy is flourishing.

2Blondboys's picture

It is a factual statement. The issue is and has been for years that millions of working age are no longer working. I know many of working age that work off the books. So they retired, took early SS and are working for cash.

Additionally, many young people in school are not working. I believe working age is 16 and older. This bracket of those 16-21 I believe show the steepest decline of working. As an employer, this stat appears to be true. Many in college today live off their loans. They do not work. If they do it is for cash.

The underground economy is flourishing.

Cynicles II's picture

double speak

arent stats great

Giant Meteor's picture

Thanks Captain Obvious, I mean Janet ..

ElTerco's picture

Don't laugh... there is some truth to that.

toady's picture

Unfortunately, obamacare doubling every year forced me to seek employment that provides insurance.

Giant Meteor's picture

Strategic planning ..

Did you ever consider a career in finance ?

toady's picture

Well.... I guess I could stay retired, because I could pay the  $1200.00 a month for my insurance  (just me, no family plan), but it just pisses me off... and if it doubled again to $2400.00 a month next year, then it would be a funding problem.

No, it's better to just stay away from obamacare until it collapses.

Endgame Napoleon's picture

For every full-time job that pays enough to cover basic living expenses without unearned income from a spouse or government, a deluge of applicants compete against you, unless the job is not advertised due to being filled by friends or family of employees or the employer or unless it is one of the few job categories requiring rare skills.

For every substantial job, replacing a long-term employee exiting the workforce or moving to another position, there are 50 jobs where employers replace the departing worker with a part-time mom worker whose spousal income or welfare / child tax credits enable her to work for a pittance or a revolving door of temp workers. These jobs are constantly advertising for workers; managers never / ever find a permanent hire (on purpose).

Kidbuck's picture

We are putting diaper heads and Mexicans and their chain migrated heathen families on SS disability and welfare as fast as we can.

Offthebeach's picture

Kill, age off pesky American working class and replace with working "guest", who better STFU and mow that lawn as Muffy has her Yoga class outside today with her MILF friends tightening their boxes.

Ntoxic8ingWave's picture

Baby Boomers trying to retire, SS and pension plans will finally collapse.

Endgame Napoleon's picture

Employers are not replacing most of those retiring boomers, or they are not offering the same quality of job to succeeding generations, not just the millennials, either.


This was a good article, pointing out one of the ways that the employment numbers are deceptive. The numbers on income levels are, likewise, inaccurate.

The whole “median family income” is a way to to inflate income. Most Americans are not married anymore, including most of the people with children.

Economists do not count multiple streams of unearned income from welfare and child tax credits in most measures of poverty when describing the plight of single parents, yet even though we have a 62% out-of-wedlock birth rate in America, they focus on median family income, like the USA was still mostly composed of married households.

They completely bypass per capita income, ignoring the 28% of childless Americans over 40 and a ton of younger people currently in that category—i.e. the people who do not qualify for free rent, free groceries and child tax credits that max out at $6,269. They do this even though more Americans are single all of the time.

In their “median income” tabulation, do they count all of the income of seniors, grown children and extended family, living in households with basement dwellers who cannot afford rent on today’s temp, part-time, low-wage and churn jobs? This is not the same thing as a married couple with finances intertwined.

Creepy_Azz_Crackaah's picture

"Crypto investors, tbh."

Ummm... Crypto is **CURRENCY**, not a gambling and/or Ponzi and/or investing scheme.

These stoooopid peanutz old-bugs. They never learn.

GETrDun's picture

Work harder slaves!

You have 96 million mouths to feed!

hotrod's picture

A lot of people are out due to Stock appreciation in IRA. 401K, early retirement.  Should the markets tank financial life vest will sink.

Philo Beddoe's picture

My mother in law has no 401k or money set aside and she can sit on her ass doing fuck all just fine. 

Offthebeach's picture

I bust ass, no money.  Its all taxed, fined, feed, permitted,  stamps, licenses,  insurances away.  If I don't work, no money but no work shit either. 

Tax donkey is getting cranky.

Giant Meteor's picture

A lot of folks remember all those other folks getting boned in the last 401 K (kerplunk) retirement round up //

Folks know the shitstorm is teetering on razors edge , ..

Some may well have the attitude, get it now, while the getting is good ..

Now somebody can stick that into their metric formulators and smoke it ..

ElTerco's picture

Unless you are smart and sitting on the sidelines during this blow-off top. I may have to wait a while, but it will be worth it. Even Buffet is sitting on 100 Billion in cash.

herkomilchen's picture

Why work when not working earns you free housing, food, healthcare, childcare...

Mr Pink's picture

Exactly....I'm self employed and working my butt off while a local heroin junkie and prostitute I know has great health insurance

LawsofPhysics's picture

..or you have access to all the FREE "money" you want for zero interest?


"Full Faith and Credit"

yogibear's picture

More companies in the US dumping older workers and trying to get visa holders or shipping overseas.

Overseas outsourcing  continues.

Smilygladhands's picture

And the Bernie Sanders / Elizabeth Warren crowd think its a good idea to make a shrinking workforce pay for gov giveaways.

BigWillyStyle887's picture

No their plan is to make every other country in the world buy US debt to fund it

LawsofPhysics's picture

"Once unemployment goes below 6.5% we will normaiize interest rates" - Ben Bernanke


"Full Faith and Credit"

Osmium's picture

Welcome to the new normal.

Money_for_Nothing's picture

What is funny is all the people who agonize who will be appointed as Fed Chairman. Give you a hint how it has been going lately. If they want to raise interest rates they put in a dove. If they want to lower interest rates they put in a hawk. Anyone who thinks the public Fed board is anything but a group of shills is kidding themselves. Hair-Guy would say that Ancient Aliens sets the rates. Stichen (RIP) would say Anunnaki.'s picture

A man went to apply for a job. After filling out his applications, he waited anxiously for the outcome.

The employer said, "We have an opening for people like you."

"Oh, that's great," the man exclaimed. What is it?"

The employer answered, "It's called the door."

LawsofPhysics's picture

Yes, people seem to forget that the real minimum wage is in fact ZERO.

Stu Elsample's picture

Those aren't "Americans"...they're freeloaders-Democrat Party voters

FireBrander's picture

Even Karl Denninger has become a "freeloader"; he's not as disconnected from reality as I thought....

sudzee's picture

50 million crypto traders and only 16million coins available. Bitcoin needs to start moving soon to soak up a few trillion from move from freely printed fiat to the new world order in assets.