Record 94 MILLION Americans Not In The Labor Force; Participation Rate Lowest Since 1977

Record 94 Million Americans Not In The Labor Force; Participation Rate Lowest Since 1977 (ZeroHedge, Sep 4, 2015):

While the kneejerk headling scanning algos are focusing on the seasonally-adjusted headline monthly NFP increase which came in a worse than expected 173K, the presidential candidates – especially the GOP – are far more focused on another data point: the labor force participation rate, and the number of Americans not in the labor force. Here, they will have some serious ammo, because according to the BLS, the main reason why the unemployment rate tumbled to the lowest since April 2008 is because another 261,000 Americans dropped out of the labor force, as a result pushing the total number of US potential workers who are not in the labor force, to a record 94 million, an increase of 1.8 million in the past year, and a whopping 14.9 million since the start of the second great depression in December 2007 while only 4 million new jobs have been created.

Labor Force Participation Rat

And since there are still those confused why wages so stubbornly refuse to rise, here is our favorite labor-related chart, showing the annual increase in average hourly wages superimposed next to the US civilian employment-to-population ratio, which remains solidly below 60%, and has barely risen since the great financial crisis.

part rate vs wages_1

2 thoughts on “Record 94 MILLION Americans Not In The Labor Force; Participation Rate Lowest Since 1977”

  1. Out of a population of 312 million people, slightly over 200 million are working age Americans(17-65). 94 million now suffer long term unemployment, finding work where they can for pennies compared to their old jobs. US statistics don’t cover them…..We are now at FULL employment according to the talking heads with a 5.1% unemployment rate….Time for a rate hike for the FED….

    Meanwhile, real costs of living, food, medical care and shelter continue to skyrocket for the people. These costs are not factored into the inflation statistical model, so they can claim inflation is now at 2%…..isn’t that wonderful? That means it is time for the FED to tighten…..

    Corporations now own the US government thanks to Citizens United ruling by the worst supreme court in our history…..No truth allowed.


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