The Employment Rate In The United States Is Lower Than It Was During The Last Recession
Did you know that a smaller percentage of Americans are working today than when the last recession supposedly ended? But you won’t hear about this on the mainstream news. Instead, the mainstream media obsesses over the highly politicized and highly manipulated “unemployment rate”. The media is buzzing about how “163,000 new jobs” were added in July but the unemployment rate went up to “8.254%.” Sadly, those numbers are quite misleading. According to the Bureau of Labor Statistics, in June 142,415,000 people had jobs in the United States. In July, that number declined to 142,220,000. That means that 195,000 fewer Americans were working in July than in June. But somehow that works out to “163,000 new jobs” in July. I am not exactly sure how they get that math to add up. Perhaps someone out there can explain it to me. Personally, I find that the “employment rate” gives a much clearer picture of what is actually going on in the economy. The employment to population ratio is a measure of the percentage of working age Americans that actually have jobs. When it goes up that is good. When it goes down, that is bad. In July, the employment to population ratio dropped from 58.6 percent to 58.4 percent. Overall, the percentage of working age Americans that have jobs has now been under 59 percent for 35 months in a row.
The following is a chart of the employment to population ratio in the United States over the past 10 years:
The gray shaded bar in the chart represents the last recession as defined by the Federal Reserve. As you can see, the percentage of working age Americans with a job dropped sharply from nearly 63 percent at the start of 2008 to a little above 59 percent when the recession ended.
But the “employment rate” kept on dropping even further.
It finally bottomed out at 58.2 percent in December of 2009.
Since that time, it has stayed very steady. It has not fallen below 58 percent and it has not risen back above 59 percent.
This is very odd, because after ever other recession since World War II this number has always bounced back strongly.
But this has not happened this time.
In essence, it is starting to look like 4 percent of the working age population of the United States has been removed from the workforce permanently.
The good news in all of this is that things have at least not been getting any worse over the last couple of years. Even though things have been bad, at least we have had a period of relative stability.
The bad news is that the employment rate has not rebounded despite unprecedented borrowing and spending by the federal government and despite reckless money printing by the Federal Reserve.
Considering how desperately the federal government and the Federal Reserve have been trying to stimulate the economy, I truly did expect to see the employment rate bounce back at least a little bit by now.
Unfortunately it has not and now the U.S. economy is rapidly heading for another recession.
But Barack Obama is going to prance around over the next few days and talk about how wonderful it is that the economy created “163,000 new jobs” in July. … Full article
- We’re Still 12 Million Jobs Away From Normal – Bloomberg (bloomberg.com)
- July Jobs Report Is Clear As Mud – Bloomberg (bloomberg.com)
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