Posted on 10/06/2014 10:42:21 AM PDT by SeekAndFind
America's jobs picture is seeing huge improvement, with robust numbers that are giving investors confidence in the economy. The U.S. added 248,000 jobs last month, bringing the unemployment rate below 6 percent.
But one part of that picture is still a puzzle: People continue to stop looking for work, and in doing so, are dropping out of the labor pool. In fact, the participation rate in the labor force has fallen to 62.7 percent -- its lowest level since early 1978.
How can this be? As the job market heats up and the unemployment rate falls, wouldn't that mean more people are looking for work, not less?
"The decline is without precedent," Bob Funk, chief executive of global staffing company Express Employment Professionals, told CBS MoneyWatch. Government tracking of employment statistics go back to 1948, he said, "and a decline like this has never happened since then."
There's no clear reason why people are leaving the workforce, and the issue has ignited a fierce debate among economists. One trend that they seem to agree on? About half of the decline is due to baby boomers entering retirement years.
The other half of decline gets a little fuzzy. Funk notes that some portion of the unemployed either don't want to work or don't think they can find a job. His company commissioned a poll of unemployed in May, he said, and found that 47 percent have completely given up looking for work. "That's a real problem," he said.
The labor force participation rate was around 66 percent of the population in 2007 before falling to 62.7 percent.
Some economists say the expansion of food stamp and disability programs are keeping people out of the labor pool. Others says that young people are dropping out, partly because more are going to college
(Excerpt) Read more at cbsnews.com ...
The few people I have known to get laid off in this economy either changed careers or were at an age to retire or close enough to coast into it. If they were of working age and did not change, they are still unemployed, relying on their spouse.
I should say also, it seems that middle level management types have the most trouble adjusting.
because they are tired of working to support others who aren’t, but ought to be supporting themselves because they can.
my wife has not been employed gainfully since jan, 2011. she did a temporary stint last year, but after nine months, that ended.
she is no longer being counted in the gubmit statistics, but she is surely unemployed, and surely looking, and surely voting.
we are making do with my income only. we are not starving, but we are not as steady as we were when she was working.
we are fortunate, in that I make enough to survive...but we are not better off than we were in 2008.
fundamentally transformed...that is what we are.
True. Still looking for full-time work.
I honestly don’t know what world I was living in, but when I found out people were on disability because they were drunks I was floored. I simply could not believe it. Now divorced, my X is applying for SSDI for (drum roll) being a drunk. And the X will probably get it too.
Trillions of Dollars in vote buying programs over the last 50 years, have made work optional.
Tired of pulling the wagon with the majority riding.
Because we don’t want to get ebola?
Why work if you don’t have to?
Maybe some are going Galt.
JoMa
My wife’s work had a mid twenties gal quit to go on disability for ‘anxiety’.
She now travels abroad much more.
Keep working. Millions of vacationing yutes depend on you.
74% of the jobless who have been removed from unemployment calculations are in the 16-54 age bracket, with only 26% in the 55 and above bracket.
Because the federal government pays them for not working if they vote the right way?
There are people who argue with me even right here on FR, but I think its plain that there are millions who are unemployed, who would normally have been employed, but who are no longer counted as unemployed. It artificially lowers the unemployment statistic and makes it sound as if its a high normal, when in reality its stratospheric.
The over 50 crowd got hammered with lay-offs. I got laid- off in 2012 and I'm still looking for permanent work in my field.
Me too. Living on savings and scraping together whatever temp work I can get.
The question should be HOW ARE PEOPLE LIVING WITH NO JOB!
That’s the question I want answered!
____________________________
There’s a lot of off the books work going on. House cleaning, small odd-job handy work,random available labor for whatever,babysitting,house sitting, pet sitting/walking, etc. In my area, the names of people available for this sort of cash work are passed by word of mouth. There are people with skills who will alter/sew clothing, knit/crochet,help you move,fix something that’s broken, design your web site. Not all of them are on welfare. Some are on disability. Some are retired. Some are young mothers who do their work at home in spare time.
I suspect most have some sort of check coming in and supplement with underground gigs. On the urban street,back in the day, it used to be known as *having a hustle*. Not all hustles are illegal, although many are. Many simply skirt licensing laws and practice a trade without credentials.
Essentially, they are self-employed.
Those no good capitalistic dogs!
How dare they not pay their fair share!
[/Sarc]
Simple. 13 states now have benefits from the federal government and state programs that equal or better the average income for working at a job.
Even good people from families that have always had a good work ethic are being seduced to quit work and live off the government dole.
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