The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on January 10, 2014, 05:08:18 pm
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http://www.zerohedge.com/news/2014-01-10/people-not-labor-force-soar-record-918-million-participation-rate-plunges-1978-level (http://www.zerohedge.com/news/2014-01-10/people-not-labor-force-soar-record-918-million-participation-rate-plunges-1978-level)
People Not In Labor Force Soar To Record 91.8 Million; Participation Rate Plunges To 1978 Levels
Tyler Durden's picture
Submitted by Tyler Durden on 01/10/2014 08:48 -0500
Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.
(http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/01/LFP%20Participation_0.jpg)
And the piece de resistance: Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.
(http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/01/Not%20in%20Labor%20Force%20Dec_0.jpg)
The jobless, laborless recovery continues to steam on.
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Why would anyone continue to seek work if they know they are going to get a check whether they do or not?
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Why would anyone continue to seek work if they know they are going to get a check whether they do or not?
Exactly. A man called into Pat and Stu yesterday saying he is divorced, pays his ex-wife $1,000 a month in child support and she lost her job and has not gone back to work. He asked her when she was going to look for a job (it's been a while) and her response to him was "why should I? My unemployment hasn't run out yet." Since she receives $400 a week, plus the $1,000 and doesn't have to pay child care she thinks she is doing great without working. Other people called in with similar stories...... why look when they can collect money from unemployment.