According to the St. Louis Fed, which collects an enormous amount of data on this subject and on dozens of others, the labor participation rate is at a multi-decade low. The labor participation rate is the percentage of people who are eligible to work (e.g. those who aren’t children or retired) who work or who are actively looking for jobs. The labor participation rate peaked at a little over 67 percent in the year 2000, and it has been declining ever since. It is now 62.8 percent, which is the lowest level since 1978, and it has been declining especially rapidly since the financial crisis when it was about 66 percent. What this means is that the declining unemployment rate is calculated using a shrinking denominator, and this means that the headline unemployment figure is misleading. wallstcheatsheet/business/is-the-employment-situation-really-improving.html/
Posted on: Tue, 22 Jul 2014 13:46:30 +0000
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