Record 95.9 Million Americans Are No Longer In The Labor Force

In what was otherwise a solid jobs report - one which Donald Trump may or may not have leaked in advance - in which the establishment survey reported that a higher than expected 223K jobs were added at a time when numbers below 200K are expected for an economy that is allegedly without slack, the biggest surprise was not in the Establishment survey, but the household, where the unemployment rate tumbled once more, sliding to a new 18 year low of 3.8%, even as the participation rate declined once again, as a result of a stagnant labor force, which was virtually unchanged (161.527MM in April to 161.539MM in May, even as the total civilian non-inst population rose by 182K to 257.454LMM).

What was perhaps more interesting, however, is that for all the talk that the slack in the labor force is set to decline, precisely the opposite is taking place, because in May, the number of people not in the labor force increased by another 170K, rising to 95.915 million, a new all time high.

Adding to this the 6.1 million currently unemployed Americans, there are 102 million Americans who are either unemployed or out of the labor force (and it is also worth noting that of those employed 26.9 million are part-time workers).

In other words, contrary to prevailing economist groupthink, there is a lot of slack in the economy, and if as the latest Beige Book revealed, employers are now hiring drug addicts and felons to make up for the shortage of qualified candidates, a long time will be pass before wages see significant gains.

Comments

Stu Elsample Fri, 06/01/2018 - 09:07 Permalink

Welfare dependent 3rd-world trash infestation.

(Thank the Democrat Party that has deliberately created the welfare-state and open-border mess for the voter base that it provides to them.)

Looney Stu Elsample Fri, 06/01/2018 - 09:07 Permalink

 

The crooks at the BLS are in a pickle. Their Jobless Rate “calculations” were designed to hide the Depression-level unemployment.

Now, the employment numbers are improving and if the BLS doesn’t change the “methodology”, the Jobless Rate will go NEGATIVE in a few months.

NAR (National Association of Realtors) pulled the same shtick a few years ago with “NAR's Humiliating Multi-Year Existing Home Sales Downward Revision”.

Looney

In reply to by Stu Elsample

pods Four chan Fri, 06/01/2018 - 09:29 Permalink

That's a lot of people.  Maybe us working folks have it all wrong? 

I sure as hell have noticed how $$ doesn't go nearly as far as it used to.  $100 for a quick trip to the supermarket, and everything else you need goes up in price.  The financialization of everything hasn't helped.  Now the price structure of almost everything is fucked due to rampant debt issuance. Cars, college, medical. Shit, now furniture, HVAC, you name it. As soon as credit enters the mix, prices go up up up.

(((They))) are having a tough time keeping that function from imploding. /mako

pods

In reply to by Four chan

LawsofPhysics pods Fri, 06/01/2018 - 09:33 Permalink

Anything or any service that requires consumable calories (energy) or real resources (including a highly trained person) will continue to increase exponentially in "price".  After all, these are things that The criminal fucks in banking and finance cannot print out of thin fucking air.

"Full Faith and Credit"

same as it ever was!

In reply to by pods

Savyindallas 847328_3527 Fri, 06/01/2018 - 10:52 Permalink

Quit bringing over millions of foreigners from India, pakistan, Asia. Have you noticed they are taking all the jobs? I guess that's what happens when our crooked corrupt elites sell out our manufacturing base and all we give for cheap imported junk is worthless dollars. The foreigners have to spend it elsewhere, so it all comes back to the US with the foreigners buying all our real estate driving up prices, and millions come over to manage their newly acquired assets.  

In reply to by 847328_3527

pods EndOfDayExit Fri, 06/01/2018 - 12:54 Permalink

The whole reason they bring there here is that they cannot move. 

If they could move, they would have. If they can't, they H1B.

And they pay roughly 2/3rds to 3/4ths market rate if my industry is any indicator.

They use this slave labor so the show can go on. It is not Americans (or green card holders) pricing themselves out of the market.

It is the Fed printing trillions and native workers paying the price due to rampant inflation.

If the whole visa program was shut down, then you would see things change.  With it running it just depresses salaries for everyone allowing this scheme to continue.

pods

In reply to by EndOfDayExit

silver140 Looney Fri, 06/01/2018 - 12:44 Permalink

"employers are now hiring drug addicts and felons to make up for the shortage of qualified candidates"

If you've been convicted of a felony, I guess that means you're not "qualified", for what? for working as a debt slave in a mindless job. Anyone in the US-who happens to be honest- can be convicted of a felony given that law enforcement and the "justice" institutions are both arms of the parasitoid corporate fascist US state that needs hosts from which to feed.

A parasitoid is an organism that lives in close association with its host and at the host's expense, and which sooner or later kills it.

In reply to by Looney

I Am Jack's Ma… Stu Elsample Fri, 06/01/2018 - 09:11 Permalink

clearly we need more uneducated unskilled non-English speakers. 

No True Libertarian thinks otherwise:

https://reason.com/blog/2018/05/22/america-needs-immigrants-now-more-than-e/amp

funny how closely Reason adheres to Brookings’ take:

https://www.brookings.edu/opinions/in-defense-of-immigrants-heres-why-america-needs-them-now-more-than-ever/

If its good for the stock market and large international corporations, it’s “liberty” I guess.

The state’s a fiction, maaaan... so your worries about culture or becoming an ethnic minority amongst people taught to hate you... in the welfare state you work to provide... is just ‘nativism.’

 

🤨

If all that matters to libertarians is corporate profits, it is as much an enemy of true liberty as the authoritarian Left OR Right.

In reply to by Stu Elsample

I Am Jack's Ma… vaporland Fri, 06/01/2018 - 09:29 Permalink

On my train into Boston in the morning it has to be 40% East Indian immigrants (on top of the 30/40% that are 1st or second gen Chinese) here on h1b visas.

 

40%.

 

Now, they are model citizens.  I have absolutely zero problem with them as neighbors.  Not the point.

 

The point is every one of them represents someone imported from abroad to take a job our ‘economy’ should have readily trained Americans for.  The h1B phenomenon is a glimpse of what would happen to white collar and tech and medical (and...) jobs if Reason and Brookings and the Idiot Left got their way.

In reply to by vaporland

Cardinal Fang shankster Fri, 06/01/2018 - 10:53 Permalink

It's not just train rides.

Everywhere I go, I am one of few born American, primarily English speaking males.

Everywhere. Well, except work. I work in an exclusively American white male environment.

There's that.

But everywhere else, I am surrounded by non English speaking, non Americans.

It's just the way it is.

The only real problem I have with that, is that I am supposed to be the majority, but I'm not.

Talk about cognitive dissonance.

The good thing about that, is if the shit hits the fan, I have no fucking obligation to assist.

None.

Well except all that white Christian guilt.

But that shit is over in a survival situation.

Sorry.

In reply to by shankster

Occasional Hulk Fri, 06/01/2018 - 11:11 Permalink

Well, yes, its outrageous - but not because they are here.....  (not that you suggested that).

 

The outrage is that ppl born and raised here do not have the intellectual stamina or behavioral discipline to train for the best jobs in the new economy.  They are lazy, entitled MFers who get trophys for occupying space and respirating.  And I'm talking all of them: spoiled/entitled white kids, Latinos and Blacks who choose to not take advantage of educational opportunities.  I know I'm going broad brush here, and certainly not all memebers of all these 'groups' are this way, but to many are (30% to 50%?)

You know who is getting screwed though?  Asian American high school kids.  Their families value education and hard work.  The kids work their asses off and achieve and they have a hell of a time getting into UC schools because they're now 'Over-representing'..... Many are first or second generation and they come here and kick ass while the native born sit on their ass.   That's not cool either.... 

In reply to by Hulk

Frilton Miedman Occasional Fri, 06/01/2018 - 17:28 Permalink

Calling bullshit.

The HiB has been abused, back in 2010 A friend, programming mgr for a tech company, was allowed to stay on his job to train his entire team's non-American replacements.

The H1B requires "specialization" that can't be found domestically, and for that tech co, "specialization" was defined as "more efficient", they were hired for lower wages while their American counterparts were let go at the height of the great recession....Their "specialization" was cheaper wages.

H1B's are also hired as "contractors", which cuts the cost of healthcare and other employee overhead.

The H1B program is  farce, one more way for large corporations to cut wages & diminish labor demand.

 

 

In reply to by Occasional

Son of Captain Nemo Stu Elsample Fri, 06/01/2018 - 09:45 Permalink

Hey Stool

How is that MAGA wall separating our southern border with Mexi working out for you?... Not to mention the 1 million a month on a jet plane "somethings" that come through your TSA for the tech jobs America isn't allowed to do anymore... Not because they are incapable of being trained for those jobs but because YOUR MAGA government would rather pay the curry smelling Indian or Paki 1/10 the salary for the same job to "white bread" who can't find meaningful work with the same skills!...

Just sayin

In reply to by Stu Elsample

Stu Elsample Son of Captain Nemo Fri, 06/01/2018 - 09:57 Permalink

Other than your Democrat Party needing the votes, why allow illegals to enter the country and breed like cockroaches if there are no jobs for them??

You may have a soft spot for those illegals, their descendants, other career welfare trash who will not work because they are allowed to leech off of taxpayers, and the prison population that they have created, but half of your paycheck (if you work) is taken away to provide their cradle-to-grave entitlements. Do you like that??

In reply to by Son of Captain Nemo

Son of Captain Nemo Stu Elsample Fri, 06/01/2018 - 10:19 Permalink

Pull yourself up to the "dinner table" with your wallet to loot the rest of those places OCONUS we keep attempting to control but WON'T!...  Cause "red team/"blue team" will keep paying for it to it's END (https://msutoday.msu.edu/news/2017/msu-scholars-find-21-trillion-in-una…)!

I said this earlier today (https://www.zerohedge.com/news/2018-06-01/dollar-banks-bid-after-payrol…) "red team/"blue team" is a wholly owned subsidiary of the "six sided star"!

So that makes you obviously a WILLING party!!!

In reply to by Stu Elsample

MK13 Fri, 06/01/2018 - 09:09 Permalink

Labor participation will increase when well paying jobs appear with less title ix requirements, less constrained by regulations and diversity requirements.