Labor Force Participation Rate Drops To 25 Year Low, At 64.5%
The
inverse silver lining to today's jobs report that will be lost in the
shuffle of what is perceived as a good NFP (despite consistent initial
jobless claims of around 450K, which means that either there is a
massive data error, or the rate of job creation has somehow surged) is
that labor force participation has now dropped to the lowest rate it
has been since 1984, at 64.5%. Assuming a reversion to the long-term
average participation rate of 66%, means that the civilian labor force
is in reality 157.4 million as opposed to the disclosed 153.9 million,
a delta of 3.5 million currently unaccounted for. Maybe someone can ask
the president during his imminent press conference what happened to the
unemployed population, which would have been 18.3 if this labor force
delta was incorporated, resulting in an unemployment rate of 11.6%.
(4 votes)
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You know, I watched CNBC for several minutes yesterday to see if there was any mention of revision to last weeks claims figures. Nary a mention, only that things were marginally worse this week versus last. Seems you only get journalism in the so-called fringe media. Keep up the good w
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