The labor force participation rate … so what?

When the Feds release this week’s unemployment data, expect more chatter about the falling labor participation rate … which reflects the increasing number of discouraged people who have stopped looking for work and don’t get counted in the unemployment numbers.

For the 4 years prior to Obama’s inauguration, the labor force participation rate hung pretty steady … at around 66%.

Since Obama took office, that rate has plummeted to 63.7%.

image
image

Let’s try some math skills …

If unemployment is 8.3% with a 63.7% labor force participation rate, what would the unemployment rate be if the participation rate were at the pre-Obama 66%?

Answer: about 11.5%

image

Obama’s economic hope continues to be that more and more people get discouraged — or, just stay on unemployment for the full 99 weeks.

Bingo, down goes the unemployment rate.

>> Latest Posts

Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s