Skip to comments.Employment Stagnation: Non-farm Payrolls Increased Only 88k, Not In Labor Force Skyrockets 663k
Posted on 04/05/2013 7:32:10 AM PDT by whitedog57
I am speaking to a group in Dallas on Monday on the housing market, specifically any headwinds to a full recovery. Todays jobs numbers illustrate the headwinds to an economic and housing recovery.
According to the Bureau of Labor Statistics (BLS), nonfarm payroll employment edged up in March (+88,000), and the unemployment rate was little changed at 7.6 percent.
That is the good news. The bad news? The number of people not in the labor force which in March skyrocketed by 663,000 to a record 90 million. This was the biggest monthly increase in people dropping out of the labor force since January 2012. And civilian labor force participation rate fell to 63.3%, back to Carter-era levels.
But there is a silver lining to having 90 million not in the labor force U-6 Unemployment Rate Unemployed Marginally Attached Workers fell to 13.8%.
Finally, if we hold the labor force participation rate at 65.8%, the implied unemployment rate is 11.6%, meaning that the economy has not improved since 2010.
Hmm. We are starting to look like Japan in terms of civilian employment to population ratios.
And our wages and salaries adjusted by GDP continue to fall.
So, as we examine headwinds for an economic and housing recovery, keep our painfully slow employment recovery in mind.
If there are zero jobs, then there’s zero unemployment. At least that’s how liberals think.
Pea Brain Obama...Thank you!