Friday, April 5, 2013

Honey, I Shrunk the Labor Force. Again

Today the labor the labor force participation rate plunged from an already abysmal 63.5% to 63.3% - the lowest since 1979.



The number of people not in the labor force increased in March by a massive 663,000 to a record 90 million Americans who are no longer working.




Some of these people are retiring. Some are simply giving up looking for work. Some are collecting "disability".  What all of them are not doing is producing. Worse, most of them are being paid for not working (via social security, unemployment, disability, food stamps, rent subsides, etc. etc.) by the shrinking number of people who are working.

This is not a growth scenario.

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