General Discussion

Purveyor

(29,876 posts) Fri Oct 2, 2015, 12:43 PM Oct 2015

Labor Force Participation Sinks To A 38-Year Low

By Andy Kiersz

Posted Oct. 2, 2015 at 9:56 AM

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.

"Last time the participation rate was this low Rod Stewart's "Tonight's the Night" led the charts, "Hotel California" was in the top 20," tweeted Bloomberg chief economist Michael McDonough.

http://www.fosters.com/article/ZZ/20151002/BUSINESS/310029958/14321/ENHANCEDBUSINESS

17 replies

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Highlight:

Labor Force Participation Sinks To A 38-Year Low (Original Post) Purveyor Oct 2015 OP

The change in labour force participation since the 'recovery' Erich Bloodaxe BSN Oct 2015 #1

Nope. "Discouraged workers" are still at about 0.5% of the population Recursion Oct 2015 #11

Its that new "sharing" economy FlatBaroque Oct 2015 #2

Some places you gotta work for free, even after the internship. Octafish Oct 2015 #6

Kick rec Doctor_J Oct 2015 #3

How much of this is demographic? surrealAmerican Oct 2015 #4

25 to 54 participation has steadily declined since the recession Yo_Mama Oct 2015 #12

And it's over 80% still (nt) Recursion Oct 2015 #16

3% of a demographic this large is millions. Yo_Mama Oct 2015 #17

k/r 840high Oct 2015 #5

How's that "Service Economy" working out for many of us? Quite badly. Dont call me Shirley Oct 2015 #7

Is the service economy a euphemism from nafta, cafta, and now tpp? midnight Oct 2015 #8

Yes. I remember Bill Clinton repeating that we are moving into a service economy. Dont call me Shirley Oct 2015 #13

The 'job creators' found it too much to spend all day between counting their money Rex Oct 2015 #9

Thank God. I'd hate to think our aging population wasn't able to retire Recursion Oct 2015 #10

My mom will be leaving the workforce soon tammywammy Oct 2015 #15

What's the % of people over retirement age track like? People who stay in school past 16? whatthehey Oct 2015 #14

Erich Bloodaxe BSN

(14,733 posts)

1. The change in labour force participation since the 'recovery'

Reply to Purveyor (Original post)

Fri Oct 2, 2015, 12:51 PM

Oct 2015

basically explains away the difference in unemployment rates. We haven't regained jobs, we've just given up on finding them.

Recursion

(56,582 posts)

11. Nope. "Discouraged workers" are still at about 0.5% of the population

Reply to Erich Bloodaxe BSN (Reply #1)

Fri Oct 2, 2015, 03:34 PM

Oct 2015

That hasn't changed significantly since 2008.

FlatBaroque

(3,160 posts)

2. Its that new "sharing" economy

Reply to Purveyor (Original post)

Fri Oct 2, 2015, 01:31 PM

Oct 2015

sounds really kind, doesn't it? Sharing economy.

Octafish

(55,745 posts)

6. Some places you gotta work for free, even after the internship.

Reply to FlatBaroque (Reply #2)

Fri Oct 2, 2015, 03:12 PM

Oct 2015

Soon, you'll have to pay to have a job. Me? I'm old. Obsolete. Ready for pasture or pasteurization, depending on the next administration.

Doctor_J

(36,392 posts)

3. Kick rec

Reply to Purveyor (Original post)

Fri Oct 2, 2015, 02:09 PM

Oct 2015

I would add a snide comment, but can't think of anything snide enough.

surrealAmerican

(11,360 posts)

4. How much of this is demographic?

Reply to Purveyor (Original post)

Fri Oct 2, 2015, 02:33 PM

Oct 2015

We're talking about the baby boomers here. In 1977, they were not yet all in the workforce. Now, some of the older boomers are retiring. If you add in the higher percentage of younger people who remain full time students (as compared to thirty or forty years ago) this may not be saying much about employment.

Yo_Mama

(8,303 posts)

12. 25 to 54 participation has steadily declined since the recession

Reply to surrealAmerican (Reply #4)

Fri Oct 2, 2015, 03:39 PM

Oct 2015

So yes, more retirees among the baby boomers, but in fact there is a real problem in the younger groups.

Recursion

(56,582 posts)

16. And it's over 80% still (nt)

Reply to Yo_Mama (Reply #12)

Fri Oct 2, 2015, 04:20 PM

Oct 2015

Yo_Mama

(8,303 posts)

17. 3% of a demographic this large is millions.

Reply to Recursion (Reply #16)

Fri Oct 2, 2015, 04:37 PM

Oct 2015

Some can't afford to work, especially now with ACA. Some were gaining so little from work that they just decided it wasn't worth it.

The statistic cannot be easily explained away, especially since participation rates for workers over 65 are pretty damned high, historically speaking:
http://www.ssa.gov/policy/docs/ssb/v72n1/v72n1p59.html

Official BLS employment and participation rates by age:
http://www.bls.gov/news.release/empsit.t06.htm

Mind you, that includes many persons who are very elderly, most of whom get out of the labor force by 75-79. But of all older persons without a disability, 24% are still in the workforce, and 23.1% of them are actually working, not just prospecting.

Compare that to men aged 16-64 without a disability, 78.2% of whom are working, and women aged 16-64 without a disability, 66.6% of whom are working.

The overall decline in participation rates is not just due to retirees. Over the last year, participation rates for persons without a disability dropped for both men and women below 65, whereas the rate increased for retirees.