Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Bryan24; Vermont Lt
"Unemployment is at 3.9% (or close to that.) And you are wondering why businesses can’t find people? Because everyone is working already."

reply: "You need to check the labor participation rate."

I respectfully disagree with using the labor participation rate for discussions like that. That's calculated as:

people working + people looking for work
------------------------------------------------------(divided by)
people age 16 or older not incarcerated, on disability or in military

Basically if you're old as dirt you're still counted as part of the "labor force" (you increase the divisor in the equation). Nobody in their right mind expects my mother in her 80's to get out and find a job. But as long as she's alive and stays retired she reduces the "labor force participation rate". As long as the many, many baby boomers keep retiring we'll keep having an even lower "labor force participation rate".

So use that metric for things like determining if the SS system is stable (enough workers still working and contributing for the SS to keep making payments to retirees). That's a valid use of the "labor force participation rate", at least how the gubment calculates it. But it shouldn't be used as a barometer of a healthy economy or if it should be easy for employers to find employees.

86 posted on 06/22/2022 6:37:30 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
[ Post Reply | Private Reply | To 40 | View Replies ]


To: Tell It Right

Agreed. It establishes a trend line, but mostly worthless under the current formula.


96 posted on 06/22/2022 6:47:00 AM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
[ Post Reply | Private Reply | To 86 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson