Skip to comments.The Vanishing Workers [The labor participation rate is back where it was in December 1981]
Posted on 05/07/2012 6:24:59 AM PDT by SeekAndFind
The economy turned in another lackluster month for job creation in April, with 115,000 net new jobs, 130,000 in private business (less 15,000 fewer in government). The unemployment rate fell a tick to 8.1%, albeit mainly because the labor force shrank by 342,000. This relates to what is arguably the most troubling trend in the April jobs report, which is the continuing decline in the share of working-age Americans who are in the labor force.
The civilian labor participation rate, as it's known, fell again in April to 63.6%. That's the second decline in a row and the lowest rate since December 1981. That's rightmore than 30 years ago, longer than Mark Zuckerberg has been alive. The nearby chart shows the disturbing round trip the workforce participation rate has taken since 1980 and the precipitous drop in the last three years.
This decline is highly unusual coming out of a recession. Normally as hiring picks up, more Americans see more job opportunities and jump back into the labor force. That's what happened after the sharp recession of 1981-82, when the participation rate last hit 63.6%.
It rose smartly through the boom of the 1980s to a peak of 66.8% in January 1990. The rate dipped to 66% in the mild 1991 recession, but then rose again through the 1990s to a modern peak of 67.3% in January 2000 at the top of the dot-com bubble.
The last decade has never reached the same heights, though the participation rate did rise back to 66.4% in late 2006 and early 2007. The rate fell to 65.7% in July 2009 when the last recession officially ended, yet the distressing fact is that it has kept falling over the course of the next 33 months of ostensible economic recovery.
(Excerpt) Read more at online.wsj.com ...
Economist David Malpass notes that Americans age 55 and older are a rapidly rising share of the working-age population, a trend that has historically meant a lower overall labor participation rate.
From the graph....
The percentage of Americans in the labor force has been declining for more than a decade ( so, we can’t entirely put the blame on Obama, although under him, the trend has ACCELERATED).
In January 2000, 67.3 percent of Americans had a job or were actively seeking work. By 2007, just before the recession, that had fallen to 66 percent.
In January 2009, the month Obama assumed the presidency, it was 65.7 percent. Since then, it has fallen to 63.6 percent, a level not seen since the first year of the Reagan administration.
If you pay people not to work, and tax people who work, don’t be surprised if you get unemployment. - Milton Friedman
This recession we are in is doing nothing but getting worse, and only a damned fool would listen to that lying sack of crap in the White House and believe anything else.
Ironically enough, if employment situation gets better, the unemployment rate will appear as higher as more Americans begin to look for work again.
This is such a fraud, and it is being perpetrated on our country by the left and the 0bama administration.
Official unemployment rate bad? Will it harm our re-election?
Manipulate the data!
The labor participation rate is back where it was in December 1981
RE: The labor participation rate is back where it was in December 1981
But hey, Obama’s campaign slogan for 2012 is FORWARD !!
Charlie Daniels has a new movie coming out, here is the trailer
Behold a Pale Horse-Trailer
One should also keep in mind that in 1981, a larger percentage of women were still homemakers than in the present day.
As domestic workers have shifted into the underground economy they have displaced illegals who usually provide most of that labor and illegal immigration has slowed down.
I can watch reruns of Wall Street, Risky Business and Other People’s Money.
If Mitt doesn't have all of the obamanation reversed by then, it will never be done.
This is our last chance.
The unemployed who are participating in job training programs are not counted as unemployed. I know several unemployed people, who are participating in these programs. They have told me that there are many more people unemployed and uncounted as unemployed in this country, because when the unemployed are participating in job training programs and receiving assistance through these programs, it is not considered unemployment and they are not considered unemployed. Doesn’t make sense not to count them, in some capacity, as unemployed.
Not to worry. The economy is going to crash and burn no matter who is in the WH, the tipping point has been passed already. The fact that Mitt will be Obama lite won't make a bit of difference.
Worry less about who gets elected in 2014 and more about whether there is an election. DHS is preparing for civil war; what do they know that we don't? Actually, many of us do know it, we just don't want to say it out loud.
The data is not being manipulated, it's just misleading. If every unemployed person stopped looking for work tomorrow, the unemployment rate would be 0%, because of how it's defined.
The problem is that the falling unemployment rate is being touted as a good thing. But the economy lost 342,000 workers while adding only 115,000 jobs -- clearly the trend is bad, even though the unemployment rate looks improving.
Unless he uses the bully pulpit to educate the American people as to what is going to happen.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.