Much of the decline has been about people simply leaving the workforce

Discussion in 'Wall St. News' started by nitro, Oct 20, 2015.

  1. nitro

    nitro

    "...A record 94.7 million Americans are considered out of the labor force, pushing the participation rate to its lowest level since October 1977.

    If someone is not actively looking for employment, they simply aren't counted in the headline number. That's been a big reason the rate has declined from 10 percent in 2009 to 5.1 percent currently. It simply doesn't take as much job creation as it used to in order to get the unemployment rate to drop. The current employment to population ratio of 59.2 percent is about the same as it was when the unemployment rate was 9.6 percent...."

    http://www.cnbc.com/2015/10/20/the-new-normal-for-the-jobless-rate-is-pretty-lame.html
     
  2. nitro

    nitro

    To add insult to injury, the jobs that have been created are low paying service sector jobs. EARTH TO FED - THE STOCK MARKET WHERE PRICE IS AN ILLUSION OF COMPANIES BUYING BACK THEIR STOCK DUE TO ZIRP IS NOT THE ECONOMY!

    America is on a death spiral.
     
  3. nitro

    nitro

    The FED creates the very deflation they are trying to get out of. They don't see it, but ZIRP creates too much of everything, driving prices down.

    Worse, the markets have bought into it because so many markets are slave to SIFs. It is funny to watch.
     
  4. Yes, this is old news though...There are a few delusional folks who look at the headline numbers and still believe in the myth, but it's largely that: a myth...People leave the workforce, or worse yet, boomers never retire and the entry level worker is forced into bartending, waitressing, a commissioned/no salary job, etc, etc...It's a dysfunctional economy.
     
    i960 likes this.
  5. Yes...Japan has been doing it for 20 years now as well...They've even got the "expert" Krugman advising the BOJ...and it's still not working...