Skip to comments.This week in Trumponomics: Labor Force Participation Rate Still Low
Posted on 05/04/2018 2:17:14 PM PDT by SeekAndFind
President Trump is proud of the 3.9% unemployment rate, the lowest since 2000. But its not as great as it sounds.
Employers added 164,000 jobs in April, which was lower than forecasts but still okay. Employers have created an average of 200,000 new jobs each month so far in 2018, which is a strong pace of job growth. But the unemployment rate, which fell from 4.1% to 3.9%, is a puzzlement. There were fewer people looking for jobs in April, which means fewer people counted as unemployed. When unemployment falls because people get jobs, thats good. But when unemployment falls because people give up looking for jobs, its not so good.
For that reason, our weekly Trumpometer says: MEDIOCRE.
Economists struggle to explain two oddities in the current labor market. The first is the relatively low portion of working-age Americans who have a job or are looking for one. The so-called labor-force participation rate is 62.8%, a level it has generally been stuck at since 2014. The peak was 67.3% in 2000. So while the unemployment rate is back to the low levels of 2000, the portion of Americans working or looking for work is considerably lower.
An aging labor force might explain part of the problem, since workers aged 55 to 64 a bracket that is swelling, as the baby boomers age are less likely to work than younger folks. The opioid epidemic might keep some people who would otherwise have a job from working. Recent research from the Conference Board suggests more people consider themselves disabled these days, a third possible explanation for the low participation rate.
The other oddity is weak wage growth, with wages rising just 2.6% during the last 12 months. Ordinarily, employers hike pay as unemployment drops and workers become scarce.
(Excerpt) Read more at finance.yahoo.com ...
It’s mainly illegals that have taken a huge percentage of the jobs.
No one complained about this when Bronco Bama was President.
This guy really understates this.
As of the end of 2017 there were 62 million Americans on Social Security. I'd say the entire issue of low labor force participation can be attributed to massive growth of retirees over the years. See below:
The so-called labor-force participation rate is 62.8%, a level it has generally been stuck at since 2014.
The 62.8% represents the number of people employed and looking for work as a percentage of the "adult population" in the U.S., which is defined as anyone 16 or older who is not institutionalized. This percentage is so low because retirees are included in the "adult population" even if they have no interest in working.
ha ha ha ha
fakenews yahoo tries to downplay the Trump economy.
These same pukes sang the praises of every disastrous move by Obama.
And when someone would point out the participation rate, it was ignored by fakenews yahoo.
cram it, yahoo. no one listens to your fake analysis.
RE: The 62.8% represents the number of people employed and looking for work as a percentage of the “adult population” in the U.S., which is defined as anyone 16 or older who is not institutionalized. This percentage is so low because retirees are included in the “adult population” even if they have no interest in working.
I’d like to NOT INCLUDE those who are below 18 in the Labor Force Participation Rate. I mean most of these kids are still at school and it will overstate the problem.
I would also like to NOT INCLUDE those who are eligible for social security (e.g. those 62 and above ). A significant number of these folks need not work because they already have SS (and/or) Pensions (and/or) 401K’s.
We should really look at those who are between 18 and 61 to gauge the seriousness of the problem.
Back when we were wondering about the Labor Force Participation rate, no one seemed to care.
Now, it’s important?
Well, the U6 number is down to 7.8% ( it was close to 10% during most Obama’s administration ). This are people who are without jobs and are actively looking for work.
We cannot ignore the fact that we are trending in the right direction.
What labor statistics sometimes tell you is that some labor statistics are meaningless. This "Labor Force Participation Rate" is one of them.
That something proved to be covering them up.
Despite a stellar work record and resume, I couldn't even get a call returned or anything other than the standard canned rejection e-mail.
Somehow, after Trump got elected, I begin to have actual inquiries trickle in, which led to actual interview, which led to an actual job. I now have a job paying over $5K annually more than the old job, a near impossibility for a (mostly) white guy in his 60s until very recently.
Further, my e-mail is flooded with individual serious inquires not just the standard spam on what you can make driving for Uber and the like.
I'm betting my story is not unique.
The enemedia combined with the 0' regime are just so predictable.
Uhmmmm..... So, let’s see if Larry has anything positive to say about the President:
This yob is a lefty who has a BA and spent his career writing for useless outlets
Why should I pay any attention to him?
You are so incorrect
Real unemployment is at 10-12% when you factor in the people whose bebfits have run out and have not found work (or have taken employment for lesser pay to try and survive). It is still a very tough job market out there, especially for blue collar folks (non college educated whites in Democrat talk). Plus wages are not in line with the cost of living. The country is stil not doing well. Undoing the damage of the HW Bush, Clinton, W Bush, 0bama administrations willntake a long time.
The U-6 is what i watch for the right trend. The dems messed up the headline number so they would not look bad; especially going into the election.
Yes, and under Obama it was surprisingly high, to hear Lefties tell it.
Stop paying people to not work with money extorted from working taxpayers.
Yahoo, All you need to know. If you use yahoo for e-mail do yourself a favor and switch. Well worth the hassle and you will no longer have to tolerate the Rat splash page when you check your e-mail.
I have different eMail addresses for each device, so that if I want to send something, I can do it to a specific device.
I think my Yahoo account gets used between 1 and 3 times per year, and I never see Yahoo’s page.
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