I guess the official unemployment rate will decrease again now that nearly half a million Americans dropped out of the workforce last year. At this rate the unemployment rate will be near zero in no time!
Is America hard at work? Or hardly working? I ask this because 430,000 Americans of working age (16 and older) dropped out of the workforce in June.
Over the last year, only 1.3 million of working age have entered the workforce, even as the population of this same demographic increased by more than 2.8 million. Just over 1 million members of this group found jobs. That’s right — of the new additions to the working age population, less than four in 10 found jobs.
The newspapers touted the reduction in the unemployment rate to 5.3% as a cause for celebration. Yet for every three Americans added to the working age population (16 and older), only around one new job (1.07) has been created under Obama. At this pace, America will soon officially have a zero unemployment rate — but only be because no one will be looking for work.
Here’s the story the media didn’t report: More than 100 million Americans over 16 are not working. Usually when the economy picks up, workers who have been laid off stampede back into the workforce to earn a paycheck. Now we have a better job market with fewer workers.
This is partially explained by baby boomers retiring. But the largest reduction in the workforce has been among the millennials.
Read the whole thing and weep.