Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low

Tyler Durden's picture

A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that's not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement.

Chart below shows it all - that jump is not a fat finger!

And Labor Force Participation:

This is the largest absolute jump in 'Persons Not In Labor Force' on record...and biggest percentage jump in 30 years.

Chart: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
LoneCapitalist's picture

Yes, thats a very good point, and btw, I think that merkel is no worse than hitler was.

sun tzu's picture

0bozo is Shrub on steroids and it's giving America hemorrhoids

Nascent_Variable's picture

Of all the things I thought Obama would be when he was elected, I have to admit Bush III was not one of them.

The recent numbers make it official.  Romney be damned, Wall Street has their man, and they intend to cook the books all the way to his second inauguration.

midtowng's picture

Romney be damned? Hell, they are both Wall Street boyz. Heads Wall Street wins. Tails Wall Street wins.

TruthInSunshine's picture

LOLstatistic of the day, bitchez, courtesy of the Obama Friendly Floyd Norris of The New York Times:

Wow. But Is the Number Real? 

February 3, 2012, 10:13 am

By FLOYD NORRIS

How many jobs did the American economy add in January?

 

The Labor Department estimated on Friday that the economy gained 243,000 jobs.

 

The department also estimated that the economy lost 2,689,000 jobs in the month.


The difference in the two numbers is in seasonal adjustment. Employment always falls in January, as temporary Christmas jobs end. So the government applies seasonal adjustment factors in an effort to discern the real trend of the economy apart from seasonal fluctuations. The actual survey showed the big loss in jobs. The seasonal adjustments produced the reported gain of 243,000 jobs.


A reason to doubt the number is that there has been a tendency in this cycle for the seasonal factors to overstate moves, in both directions. Labor mobility is down, as fewer workers quit to seek better jobs and employers both hire and fire fewer people than they used to do. If the seasonal adjustment was too large, then the gain should be smaller.

 

 

And that's your LOLstatistics Moment of the Day, bitchez.

 

 

TruthInSunshine's picture

Bullshit Labor Statistics (BLS) is doing its thang...

1.2 million working age people no longer have the honor & privilege of being 'counted' for purposes of tabulating unemployment + inherently flawed 'seasonal january adjustment' + a whole lot of temporary workers @ no benefits and minimum wage = turn an actual survey data of a loss of 2.6 million jobs into a BLS reported gain of 243,000 jobs.

 

Yeah....

....Recovery, bitchez!

Jumbotron's picture

Although this all started in 1913, this ever increasing decline of America started in earnest with Nixon.  He understood through his advisors and cabinet members including Kissinger, that America was experiencing its first case of collapse.  We were undergoing our domestic Peak Oil event, we were overextended in Viet Nam and we could not pay off our debts with gold anymore.  So, he took us off the gold standard and floated the dollar as a pure fiat currency, which he was now forced into instituting price controls from the obvious inflation that came about because of that.  We turned tail and ran out of Viet Nam, we began to import far more cheaper oil from Saudi Arabia and we went to China to open up trade relations with the very country that helped fund, train and even fought alongside with the VC that kicked our butts in Viet Nam.

And every president since has done nothing about this situation.  Once they saw how the ponzi worked....how it kicked the can down the road so that at least for 4 years if not 8 each president that came after Nixon has not had to go before the America people and say..."Look, history has shown us that nothing is forever.  Everything is born, reaches a peak and then declines to some form of equilibrium.  We have had our day in the sun....now is the time to prepare for our inevitable autumn.  Now is the time to....with honesty and a clear eye.....prepare for our decline to equilibrium.  We can no longer be an empire.  But we do not....at the same time.....have to be relegated to the dustbin of history."

So this is not an Obama or Bush thing.  This is an honesty thing.  And the American people who still elect, still choose their representatives are some of the worst on the planet when it comes to honesty and being clear eyed when it comes to our inevitable decline.  The only saving grace to our national shame is that no one else in history was really honest with themselves and properly prepared themselves from their own culture's decline.

The Bell Curve rules all human endevour not the Wheel in The Sky.  It only represents the eternal rebirth of the delusion that this time is different....that this time we have come up with the answer to finally destroying the Bell Curve forever. 

The Great Ponzi is the Wheel in the Sky.  The Bell Curve is Zerohedge.....because on a long enough timeline.....

francis_sawyer's picture

Agreed in principle to most of it... (except this)...

And the American people who still elect, still choose their representatives are some of the worst on the planet when it comes to honesty and being clear eyed when it comes to our inevitable decline...

Americans just walk into voting booths... The DIEBOLD machines choose the representatives...

Jumbotron's picture

Agreed in principle to most of it... (except this)...

And the American people who still elect, still choose their representatives are some of the worst on the planet when it comes to honesty and being clear eyed when it comes to our inevitable decline...

Americans just walk into voting booths... The DIEBOLD machines choose the representatives...

 

Right....should have said....And the American people who still (OSTENSIBLY) elect, still choose their representatives are some of the worst on the planet when it comes to honesty and being clear eyed when it comes to our inevitable decline...


francis_sawyer's picture

Fixed!

Here's a short video on how our democratic system works...

http://www.youtube.com/watch?v=1aBaX9GPSaQ

Jumbotron's picture

"Maybe in Ohio...BUT NOT IN AMERICA" !!!!!

 

LOL !!!!!

Goldilocks's picture

Guy: Ookay, now before I execute this order, are you sure you understand the risks of stock ownership?
Homer: Absolutely!
:zooms into Homer's brain, with a bunch of people in a dance line singing 'We're in the money'. Curtains open, revealling a king-kong type creature. End of scene:
Homer: You heard the monkey, make the trade.

homr4.mp3 119kb
http://www.lardlad.com/assets/quotes/season12/BABF22.shtml

Cathartes Aura's picture

thanks Jumbotron, good to read a more "clear eyed" post. . .

And the American people who still elect, still choose their representatives are some of the worst on the planet when it comes to honesty and being clear eyed when it comes to our inevitable decline...

I believe it is the nature of "voting" that assists in this delusion, the nature of "choosing" a side or a player that you can cheer and argue for - identify with - and then spend months arguing and trying to convince others of "your position" - it is a system DEVISED to capture attention and behaviours, it has it's own rules of engagement, and once entertained in the minds, it becomes habitual, an every other year ritual (Congress, President) that guarantees the participants a circus to follow - sports team model - and gets nothing real accomplished but keeping those who play PRE-occupied.

voting.  it's the LEAST you can do.

hedgeless_horseman's picture

 

 

Chocolate rations have increased!

Ancona's picture

Can someone help me find out where the bread line is? I already have my circus tickets......

Matt's picture

Wal-Mart, 11:59 PM, the day before your SNAP allotment.

Mr Lennon Hendrix's picture

Better bring a tent and a sleeping bag, I heard the lines are long.

quasimodo's picture

Walmarts new motto could be something like this "Give me your poor, your tired, your huddled masses"

oops, never mind I think that is the new FEMA camp motto

prains's picture

can hardly wait for the ersatz lattes

expres12's picture

There are no lines.  Now the bread is mailed or e deposited...

Quaderratic Probing's picture

Bloomberg joins CNBC in cheerleading jobs report percentage without speaking of 1.2 million.

Betty lu pom pom girl..... put a bag on your head and stand in the corner ex reporter

Dr. Richard Head's picture

"It was the most memorable time of my life. It was a touching moment, because I thought this day would never happen.  Iwon't have to worry about putting gas in my car.  I won't have to worry about paying my mortgage.  You know, if I help him he is going to help me." - http://www.youtube.com/watch?v=P36x8rTb3jI

quasimodo's picture

Typical stupid two holer on the dole

midtowng's picture

How is this Obama's fault? Do you really think this would have been any different if a Republican was president?

Dr. Richard Head's picture

True D or R this would have continued.  The fact is that Obama and Bush both support counterfeiting false claims on our labor for the benefit of entities which are failing but closely connected with the government, therefore draining productive capital from the economy.  It is good to be the king.

ElvisDog's picture

Hah, that's funny midtowng. When actions of the Obama administration become so outrageous and indefensible that even you can't support them, all you have left is the old "well the other guy would have been just as bad". Does that make you sad and reflective or is it just a defense mechanism to prevent you from examining your overall world view?

midtowng's picture

I've never defended Obama. I denounce him every day for continuing the policies of the Bush Administration. What policies of Bush HASN'T Obama continued? Doing the bidding of Wall Street bankers? Check. Continuing useless wars? Check. Continuing the assault on civil rights in the country? Check. Backing the same monetary and tax policies? Check.

You guys need to stop screaming "Obama" every time the government does something fucked up, as if electing a Republican would change anything (with the exception of Ron Paul, of course).

roadhazard's picture

The really sad/funny part is that the Obama whiners have nothing better to offer except maybe someone with a birth certificate. Yeah, everyone should vote for the Party that can only think of getting a birth certificate. Credibility out the wazoo right there. America deserves what it gets.

Ron Paul would Never get the repubican nomination, never.

Dr. Richard Head's picture

Had a conversation with an Obama supporter.  I said I wasn't looking to debate her, but was curious as to what Obama has done different than Bush.  Here response was that Obama has been better at diplomacy than Bush.  So it's official, the majority of those politically active listen to rhetoric and ignore actual actions. 

I'll be in the bathroom for a an auto-asfixia erótica session if any of you need me.

 

Dumpster Fire's picture

You guys need to stop screaming "Obama" every time the government does something fucked up, as if electing a Republican would change anything (with the exception of Ron Paul, of course).

 

um

 

I just want to point out that TARP and AIG happened under Bush.

 

lol

Zymurguy's picture

We're yelling "Obama" because he's the one who is sitting in the White House.  If it were McCain we'd be crying out his name.

Obama didn't inherit shit... neither does ANY president.  They willfullyl paid millions of dollars campaigning to accept the situation and the position whole heartedly.

MrPalladium's picture

Has it ever occurred to you that the policies of which you complain may be neither Bush policies nor Obama policies but rather policies imposed on them by a small group you know nothing about?

francis_sawyer's picture

In defense... I'd have to say that if my head were buried between the breasts of a beer maiden carrying a full mug of beer, not much else would 'occur' to me...

Cathartes Aura's picture

but but. . . does that mean my vote doesn't count??? that I've been wasting my time all these years??? oooh noes.

nah!  you must be wrong.  I'm SURE if we can just elect THIS one guy, HE could make a real difference for me!!!!

 

 

He_Who Carried The Sun's picture

... trying to dilute and kill today's good news?

hedgeless_horseman's picture

 

 

Only vampires are afraid of a little sunshine.

graymnzrc's picture

I feel bad for the majority of people here. It seems that only BAD news is taken as fact in order to re-affirm a person's decision to build a bunker and horde gold. The jobs number (as manipulated as it is) was astounding! Granted, the UE rate is B.S. and I accept that, however to totally disregard a 250k print is equivalent to sticking your head in the sand and chanting your mantra that the sun disappeared.

WTF are you all going to do if in fact TPTB actually inflated their way out of a crisis and pulled off the stick save? Oh I know, you are going to complain about that too.

There is a psychological condition that affects people as they age, essentially the longer you live, the more apt a person is to look at information and interpret it in a way to re-affirm their beliefs. This tends to push people further towards the extremist position on any given issue. That is what is happening here.

Tyler, I want to thank you for the perspective and information that you provide on a daily basis. Unfortunately I believe that you have lost your balance and may have 'jumped the shark'.

I will continue to read but only with the caveat in the back of my mind that this site is an extremely bearish tilt and needs to be taken with a huge grain of salt. At least Ritholz recognizes when he is wrong and tries to provide balanced data.

Oh, sorry, I almost forgot, everyone buy physical gold, bullets and seeds, bitchez!

Apply Force's picture

You, dear sir, do not understand math, at least not exponential functions.  And try peeking out the window every now and then for a look at real-world employment/inflation circumstances before the next generation is spun into soylent green.

Strike Back's picture

Ok, if someone can refute me, please go ahead.  I do my own DD and checked out the numbers myself.  www.bls.gov/news.release/empsit.t17.htm lays it all out. 

Non-seasonally adjusted, the NFP in Dec 11 was 132,952,000.  Non-seas adj Jan 2012 was 130,263,000.  That's a loss of over 2.6 million jobs.

After seasonal adjustments, NFP in Dec 11 was 132,409,000 and Jan 12 was 132,166,000.  A gain of 243,000.  So, the difference between the non-adjusted and adjusted numbers are nearly 3 million jobs.  That's just fucking ridiculous, and any government body that makes such an adjustment needs to quantify it with its audience. Which the BLS doesn't.

Pushing out all of the doom and gloom from my mind, the NFP print does not comport AT ALL to my daily experiences and I have to call utter bullshit on these numbers.  So yeah, gold and silver bitchez.

 

graymnzrc's picture

I feel bad for the majority of people here. It seems that only BAD news is taken as fact in order to re-affirm a person's decision to build a bunker and horde gold. The jobs number (as manipulated as it is) was astounding! Granted, the UE rate is B.S. and I accept that, however to totally disregard a 250k print is equivalent to sticking your head in the sand and chanting your mantra that the sun disappeared.

WTF are you all going to do if in fact TPTB actually inflated their way out of a crisis and pulled off the stick save? Oh I know, you are going to complain about that too.

There is a psychological condition that affects people as they age, essentially the longer you live, the more apt a person is to look at information and interpret it in a way to re-affirm their beliefs. This tends to push people further towards the extremist position on any given issue. That is what is happening here.

Tyler, I want to thank you for the perspective and information that you provide on a daily basis. Unfortunately I believe that you have lost your balance and may have 'jumped the shark'.

I will continue to read but only with the caveat in the back of my mind that this site is an extremely bearish tilt and needs to be taken with a huge grain of salt. At least Ritholz recognizes when he is wrong and tries to provide balanced data.

Oh, sorry, I almost forgot, everyone buy physical gold, bullets and seeds, bitchez!

number cruncher's picture

graymznrc.... wow there is proof that there is asucker born every minute. 240k print? please check the numbers for yourself. not everyone here is uber bearish , what we are after though is the THE TRUTH . I suggest checking      http://confoundedinterest.wordpress.com

Calmyourself's picture

Great tit's, no brain.. I've run into that more than once..

What most of these posters possess and you do not is the GESTALT of our overall situation. Digesting the wholeness of our situation with the economic, political and societal implications means those with the capacity to undertsand are of course long term bearish.  Only propaganda guzzlers are not as they have not discoverd truth and enjoy living in the cave barely noticing the shadows outside..

graymnzrc's picture

a) Sorry for the Double Post

2) In the 40's debt\GDP was even higher then today. World did not end.

iii) My basic point is that even when you get positive reports, they are lambasted but the negative data is taken as gospel. How can you possibly consider yourself 'enlightened' when you are comparing data points that you yourself accuse of being fabricated?

D) The American standard of living is going to have to fall in order to compete in a global environment against developing nations.

5) Always focusing on only the negative perspective will cost you money. Perception isn't truth (yours or mine) but public perceptions can create opportunities.

vi) Don't break out GESTALT B.S., you have no idea of my intellect or awareness. Like I implied, this is not the only economic site I read but by far the most updated but radicalized following.

Calmyourself's picture

I'll put away the gestalt away when you pull your head out and realize the true situation.  Check out the debt situation, over 700 trillion in derivatives, energy production and transport purposely stifled, highest food stamp numbers in history,  CB"S buying gold hand over fist, but yeah good point employment's up, on a statistical basis.  The conversation was not on the basis of opportunity or public perception but on the gov cooked numers and the true domestic  / global situation; the gestalt...

#2 Seriously?  That's your point..  We just got done blowing the shit out of every possible competitor in the world and that situation is comparable to one in which we have offshored a large percentage of our manufacturing to lower wage competitors with no environmental controls or costs.. 

Yes, in fact with that comment your intellect and awareness is certainly of someones concern.

Ruffcut's picture

They added those panhandlers off the expressway ramps. Cramer said there are plenty of jobs. Occupy off ramps, while there are still spots.

Obama rama, has begun. Tickets are free. Go to the show, at your own risk. Please walk, don't run.

BLOTTO's picture

yet - in Canada...

The jobLESS rate continues to SOAR...

The jobless rate ticked higher to 7.6 percent from 7.5 percent, the highest since April 2011, as more people were looking for work.

Analysts in a Reuters poll had predicted 23,100 new positions and a jobless rate holding steady from December at 7.5 percent

http://ca.finance.yahoo.com/news/job-market-ekes-tiny-gain-120806683.html

prains's picture

oooooooooooooh  albertaaaaaaaaaaaaaaaaaaaaaa, sing it baby

Gully Foyle's picture

Bubbles: He just waltzes in there, and becomes the king of the carts. What the fuck does he think I'm supposed to do? Go down to E.I. Hey there, yeah, I haul shopping carts out of ponds and sell them back to the store for a living, I've been doing it for eighteen years, so give me a fucking check please. That's not gonna fucking happen. I haven't been paying into U.I., E.I. or whatever the fuck there calling it these days.