Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low

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Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low

Zero Hedge
Friday, February 3, 2012

A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that’s not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement.

Chart below shows it all – that jump is not a fat finger!

And Labor Force Participation:

This is the largest absolute jump in ‘Persons Not In Labor Force’ on record…and biggest percentage jump in 30 years.

Luap Nol's picture
Luap Nol
Joined:
Feb. 24, 2012 10:44 am

Comments

Luap, one of the righties tried this nonsense, at the start of Feb. There is an annual update, in January, that examines the labor workforce.

And yes, the labor market sucks. It is getting better, slowly.

There are things our govt could do, to improve things. The Teabaggers will block all of it. At the state level, the conservatives have spent all of 2009, 2010 and 2011 trying to punish poor people and workers because bankers and Wall Street speculators did bad things. Which is as about the same thing as jailing all the rich folks in America because some poor guy robbed a liquor strore.

Over at economistsview they have a neat chart showing state and local govt has been laying off workers, to offset any gains the private employment has made. Imagine, if the states that the TeaBaggers were running were trying to improve their economies instead of make Pres. Obama look bad, and they had just kept their labor force steady throughout the recession, we'd have about 1,500,000 more govt workers, and they'd be paying their bills, spending money, and living their lives, and not being homeless, or living in their brother-in-law's garage.

Phaedrus76's picture
Phaedrus76
Joined:
Sep. 14, 2010 8:21 pm

Also, you don't want to just count everyone in the population, since people are gettting older.

The labor force participation rate has been falling since 2007.

Dr. Econ's picture
Dr. Econ
Joined:
Jul. 31, 2007 4:01 pm

And any "rise" in the labor participation rate circa 2003 to 2007 was phantom, due to the inflating housing bubble, the unsustainable military spending, etc. We haven't changed course from the policies of that period, and we further have to contend with the deflating of the housing bubble and the decreasing of military spending.

chilidog
Joined:
Jul. 31, 2007 4:01 pm

Ignore all Lon Paul reversed posts. Same old, same old crapola.

DRC's picture
DRC
Joined:
Jul. 31, 2007 4:01 pm

Come on guys, your prejudice is showing. Ya'll know the labor/employment stats are cooked. Shit aint as pretty as the white washed crap fed on mass media. Liberals spin it. We know that the new jobs don't keep pace with population growth.

Nonetheless, Obama and Progressives are the appropriate medicine in this stage of triage

MEJ's picture
MEJ
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Jul. 31, 2007 4:01 pm

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Just like any source we must read between the lines, consider their sources views and how they might spin information toward that goal. That doesn't mean all their information is incorrect, as a matter of effectiveness all false /misleading information must be fused with true factual information to make it believable. that is why it is always good to evaluate the SPECIFICS of all sides of any given issue and compare. The devils are in the details as are the saints. When I do, I see that yes "Progressives are the appropriate medicine in this stage of triage" but I'm not so convinced Obama is a progressive. The sooner progressives realize/ accept they were co-opted the better. I’ll be writing in Bernie Sanders on Super Tuesday as a show of protest to the duality machine of Kabuki Theater known as the two party system. TY OWS. Just as the right is currently toughing the line of "electability" in their campaign race. the left is told if you don't vote for the democrat the right will win. in reality each side must appease their "base" and throw some bones down the road, most media discussion is distractionary, the real benefit is always for the very elite interest. deny your conditioning. vote your conscience. it's the only thing that will change it. (that is if the voting machine isn't tampered with)

Below originally posted by Ruxpert Smacko at ampedstatus.com

Picture 5 monkeys placed in a cage. A new community is formed. From
the ceiling of the cage hangs a bunch of bananas. A stepladder is
placed under the bananas. As the first eager monkey rushes up the
ladder, a fire hose knocks him off and hoses down all the monkeys.
Shocked, they sit back and regroup. Later another monkey tries, with
the same result. It may take repeated attempts by each monkey before
they become conditioned to not climb the ladder.

At some point, the lesson has been learned by this closed culture and
controls how they respond as a community. Then one monkey forgets and
steps onto the ladder. But the fire hose doesn't have time to react.
The other four monkeys grab the offender and beat him senseless.
They've learned that in this society, you don't climb the ladder.

Now the process of attrition and replacement in the society begins.
One of the original monkeys is removed and a new monkey is added to
the group. He spies the bananas and leaps onto the ladder, only to be
dragged down and beaten by the rest of the group. After several
attempts, the new monkey learns.

Another original monkey is replaced with a new monkey. And the same
process follows. Then another and another and another. Soon we have a
group of five monkeys who've never been soaked by the fire hose, but
won't climb the ladder. This learned behavior was socialized into the
group over time.

It no longer matters how many generations of monkeys follow. The new
behavior is that a monkey climbing the ladder will be dragged off and
beaten. None of the monkeys in the cage has ever been knocked off the
ladder with a firehose. None have been soaked down. They don't know
what the consequence is because it's been replaced by group behavior.
They can't remember being soaked. They don't know why they do what
they do. The accepted norm for this closed community is to beat
anyone who tries to climb the ladder.

Isn't that a lot like institutional memory? We don't know why we do
what we do. We do it this way because we've "always done it this
way." The real end consequence may no longer exist. It may not
matter. It may have vanished. But we don't climb that ladder in this
cage buddy. It just isn't done. We don't operate that way here.

J DAILEY's picture
J DAILEY
Joined:
Feb. 23, 2012 7:43 am

Where it does not elect the Taliban or Wall St.'s puppet, vote protest. I am sorry, there is no winner there and Romney is far worse than Obama in the White House. Everyone else GOPimp is worse.

Work for change down ticket and between the election sideshows, but don't spend so much time trying to convince people here that the Democrats are not our saviors. We all know this. We disagree among ourselves about what the correct response is, but we are not stupid or ignorant if we choose to vote lesser evil instead of going radical pure.

I will not make other people pay for my emotional fix. It never works out well, and what is supposed to reveal how bad things are only adds to the depth of the bottom we are going to hit.

DRC's picture
DRC
Joined:
Jul. 31, 2007 4:01 pm
Quote J DAILEY: but I'm not so convinced Obama is a progressive. The sooner progressives realize/ accept they were co-opted the better. I’ll be writing in Bernie Sanders on Super Tuesday as a show of protest to the duality machine of Kabuki Theater known as the two party system. TY OWS. Just as the right is currently toughing the line of "electability" in their campaign race. the left is told if you don't vote for the democrat the right will win. in reality each side must appease their "base" and throw some bones down the road, most media discussion is distractionary, the real benefit is always for the very elite interest. deny your conditioning. vote your conscience. it's the only thing that will change it. (that is if the voting machine isn't tampered with)

Who ever s.aid the Pres was Progressive? Nobody around here, I'd say. Progressives know that they are the leading edge, the tip and the top that can't be co-opted, but leads the way. We understand that the duopoly myth is part of the theater. You can tell it's a flawed conspiracy because it produces a sense of hopelessness and fear. One cannot find the truth between a lie and a half-truth.

MEJ's picture
MEJ
Joined:
Jul. 31, 2007 4:01 pm
Quote MEJ:

Come on guys, your prejudice is showing. Ya'll know the labor/employment stats are cooked. Shit aint as pretty as the white washed crap fed on mass media. Liberals spin it. We know that the new jobs don't keep pace with population growth.

Nonetheless, Obama and Progressives are the appropriate medicine in this stage of triage

They may be coooked, but not to order.

Dr. Econ's picture
Dr. Econ
Joined:
Jul. 31, 2007 4:01 pm

Duh, seasonal workers, retirees...

Next conspiracy theory?

mdhess's picture
mdhess
Joined:
Apr. 9, 2010 11:43 pm

my apologies for my assumtion MEJ. i'm new to this board. sorry it has taken me so long to repond, i'm not always able to come here everyday and spend time to comment/ rebutt,and learn.

i respectfullty disagree with your statement

"We understand that the duopoly myth is part of the theater. You can tell it's a flawed conspiracy because it produces a sense of hopelessness and fear."

i'm not exactly sure what you mean, but i think your saying duopoly is a myth and i am perpetuating this flawed myth, and you know this becuase it makes you feel hopeless and afraid. if you could eleborate your position with more fact, then i will do the same

i also disagree with your statement,

"One cannot find the truth between a lie and a half-truth."

i think you can, particurally when the lie is told by one side of a dualing party and the half truth by the other side of the dualing parities, and niether the lie nor the half truth can account for the experiences felt by those affected. so by knowing what isn't true and by knowing some of the truth- more truth can be obtained.

there is one very simple axiom that applies in political truth seeking...follow the money

J DAILEY's picture
J DAILEY
Joined:
Feb. 23, 2012 7:43 am

J. I think the point MEJ was making is that truth is not found between the two points marked by a full and half lie, and that would be correct. It does not mean that we cannot parse the truth from our own experience and other sources of truth to see where the two, the full and half, are compared to the truth. I think you both are closer to the truth than you may think.

Put it this way, if all we had to go on was what we heard from the Right and the Center, truth would be Left out. We might know that we were not getting the real thing, but it would be the vacuum and not the messages that would speak to us.

Keep on coming around when you don't have to be following your money. I like the Dylan line that money doesn't talk, it swears.

DRC's picture
DRC
Joined:
Jul. 31, 2007 4:01 pm

Don't worry. When we lose our jobs and fixed income doesn't pay the property taxes anymore... there's PRISON!

That's right, Prison. 3 squares a day and all the gay sex you can handle! Now that's the American dream!

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Fletcher Christian
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Feb. 15, 2012 12:49 pm

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