Labor Force Participation Sinks To A 38-Year Low

BI ^ | 10-2-2015 | Andy Kiersz

[blam]

Andy Kiersz
October 2, 2015

The September jobs report was broadly disappointing, with very few points of optimism.

Along with non-farm payrolls and wage growth missing expectations, the civilian labor force participation rate — the percentage of the US population that is either working or looking for a job — fell by 0.2 percentage points to 62.4%.

This is the lowest reading since October 1977.

(snip)

[blam]

CREDIT SUISSE: The Markets Are Gripped By 'Panic'

"The financial markets have been flashing doomsday signals in the past few months."

[headstamp 2]

And the underground economy is as big as ever.

[Buckeye McFrog]

This is the lowest reading since October 1977

I remember it well. An especially significant time in my young life. It was NOT a good time for ANY American.

[tanknetter]

Weren’t the Labor Force Participation numbers back then lower due to the much higher % of stay at home moms and housewives?

[lacrew]

One important thing to remember, when comparing 1977 to today, is women entering the workforce. In 1977, it was still very common for a woman to be a housewife, and there were fewer single mothers who had to work. IOW, a lot of women were voluntarily staying out of the labor participation rate.

Conclusion: Its even worse than it was in 1977.

[Don Corleone]

Actual unemployment probably closer to the the mid 30 %. Welfare is keeping the rioting down for now,

[11th Commandment]

In a related story, Social Security disability fund to run out of money in late 2016, report says.

[blam]

"In a related story, Social Security disability fund to run out of money in late 2016, report says. "

They'll just 'print' more money...nothing to worry about.

[blam]

Gold!

Gold is spiking.

After the disappointing September jobs report, markets were seeing a decidedly "risk off" trade, with stocks getting crushed, bonds rallying, and gold spiking.

After the report's release, gold futures were up nearly 2% in New York to trade at around $1,135 an ounce.

Meanwhile Dow futures were down more than 200 points, and the US 10-year Treasury note was back below 2% for the first time since August.

In September, the US economy added 142,000 jobs, fewer than expected, while wages disappointed and the labor-force participation rate fell to a fresh 38-year low.

(snip)

[blam]

[Buckeye McFrog]

I think you are probably correct. In cities like Detroit and Pittsburgh the union wages paid to the men allowed most women to stay home if they wanted. At least that’s what I recall.

[Buckeye McFrog]

Social Security disability fund to run out of money in late 2016, report says.

That's just going to strengthen the hand of the Bernie Sanders types who want to extend the SS payroll tax to very high levels of income. No other solution to the problem is politically sellable IMHO.

[tanknetter]

Meaning that the labor force participation situation is much worse now than it was in 1971, even though the raw numbers are the same.

I’m trying to think of how they could be adjusted to account for the societal differnences between now and then, presenting a clearer picture. You’d have to account and adjust for marriages where one spouse is able to stay home as a lifestyle choice, for starters.