http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/08/the-u-s-labor-force-is-still-shrinking-rapidly-heres-why/
The U.S. labor force keeps shrinking rapidly. Back in 2007, 66 percent of Americans had a job or were actively seeking work. Today, that number is at 62.8 percent — the lowest level since 1978:
So why does the size of the labor force matter? For one, if people are leaving the labor force for economic reasons (and they're not going back to school), it would mean that the economy is in much worse shape than the official unemployment rate suggests. The jobless rate is officially 7.3 percent, but that only counts people who are actively seeking work — not labor-force dropouts.
The size of the labor force also goes a long way to determining America's growth prospects. If, say, Baby Boomers are retiring faster than expected, then long-run U.S. economic growth will be lower than projected.
Even worse, if discouraged workers are dropping out of the labor force entirely, they may never make their way back into jobs. Their skills erode over time. Companies don't even bother to look at their resumes. They essentially become unemployable.
What are your thoughts on the economic repercussions of this fact? Can and should the government do something about it?
It seems that this is more a structural issue... It's kind of late and the entire idea of employment it weirding me out right now. I need to go to bed.
ReplyDeletethis is absurd. this needs to be a joint effort of businesses as well as the government to straight out these issues
ReplyDeleteI was surprised by that number, it seems crazy that only 62% of Americans have jobs or are actively seeking work.
ReplyDeleteThe “real” unemployment rate that takes into account millions of discouraged job-market dropouts is significantly higher. This can be devastating for someone who’s just spent 8 years in school to get a PhD because the conventional wisdom was that a more advanced degree leads to better employment opportunity, only to find that one can’t find a job.
ReplyDeleteThe last part of it is incredibly disturbing. The fact that discouraged workers will probably never make their way back to jobs because companies won't even look at their resumes. The government should definitely have some sort of rehabilitation program for people unemployed for extended periods of time.
ReplyDeleteWOW 62% that number is crazy, that is all. Something more must be done.
ReplyDelete