Nearly 1 Million Workers Vanished Under Obama

Discussion in 'Economy' started by Nova78, Sep 7, 2012.

  1. Nova78
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    Nova78 Silver Member

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    In the 30 months since the recession officially ended, nearly 1 million people have dropped out of the labor force — they aren't working, and they aren't looking — according to data from Labor's Bureau of Labor Statistics. In the past two months, the labor force shrank by 170,000.

    This is virtually unprecedented in past economic recoveries, at least since the BLS has kept detailed records. In the past nine recoveries, the labor force had climbed an average 3.5 million by this point, according to an IBD analysis of the BLS data.

    "Given weak job prospects, many would-be workers dropped out of (or never entered) the labor force," noted Heidi Shierholz of the Economic Policy Institute in her analysis of the BLS jobs report issued last Friday. "That reduces the measured unemployment rate but does not represent real improvement."

    According to the BLS, the "labor force participation rate" — the ratio of the number of people either working or looking for work compared with the entire working-age population — is now 64%, down from 65.7% when the recession ended in June 2009. That's the lowest level since women began entering the workforce in far greater numbers several decades ago.

    If you adjust for this drop, the unemployment rate would be close to 11%, instead of the official 8.5%.

    Long-Term Economic Impact

    Not only does the shrunken labor force mask the real size of the unemployment problem in the country — since only those actively looking for work are counted as unemployed — it likely means that economic growth will be subpar going forward.

    "The fall in the labor force participation rate leads us to mark down the long-term potential output growth path of the American economy," University of California-Berkeley economist Brad DeLong wrote on his blog last month. "It is harder to pull people into employment if they are out of the labor force than if they are in the labor force and unemployed."

    The weak job market has also helped depress wages. Real median annual household income has dropped 5.1% since the recession ended, more than the 3.2% decline during the recession itself — according to a new Sentier Research report.

    The smaller labor force is just one of the problems with the current unemployment number. The other is that the jobs being created aren't keeping pace with population growth. Since June 2009, the economy has added 1.4 million jobs, which is below the more than 2 million needed to keep up with population growth and far below the gains experienced at the same point in the previous 10 recoveries — which saw job gains average more than 4 million.

    Historic Jobs Recession

    Payrolls are still 6.1 million below their January 2008 peak. After January, the current jobs recession will be the longest since the Great Depression.

    The Economic Policy Institute calculates that when you add the number of jobs lost in the recession and the growth in the working age population over the past few years, the "jobs deficit," as EPI calls it, "remains well over 10 million."

    There's also the problem of people who want full-time work not being able to find it. The BLS offers a different unemployment measure that counts not only those currently looking for a job, but those who've given up looking, as well as those who are underemployed because of the soft job market.

    That measure has unemployment at a whopping 15.2%.

    Obama has flooded the country with illegals,and stifled business with regulations,effectively destroying the job market.....
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    but how can he close the borders and send 15 million illegals home when the illegal community represents so many votes?

    how can he stop promising more and more welfare entitlements when the welfare entitlement community represents so many votes.
     
  3. freedombecki
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    freedombecki Let's go swimmin'! Supporting Member

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    The American people need to send Obama packing. He has no idea that his job is not Congress' job. He failed to give the American people a budget that would keep his pre-election promise of reducing the deficit by half. Instead of reducing the deficit by half, he has added more to the deficit than all the other presidents before him, combined.

    I think the administration is making up its own fairy-tale world about America's real fiscal problem: unemployment and all the people who are no longer working, graduated from college and can't find jobs.

    It would be best if we ousted Obama from the job he refuses to do. Let someone else run the country for awhile and at least get people back to work, try to reduce the size of the government, take the union clauses out of health care that will make government so expensive, no one will get any money for their working any more. With gas prices up, food costs up, their mortgages higher than the value of their homes and a bears circling the real estate market, we need an adult in the place of boy-king.

    Too many people have no jobs, nothing to do, and too few people are working to support all the non-working in the country.
     
    Last edited: Sep 11, 2012
  4. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    yes exactly!!! Sadly, that seems to be the liberal plan! The free riders have to vote for Barry to keep the welfare flowing and Barry knows it. It's great political strategy if you don't mind ruining the country!! And of course liberals don't mind ruining the country. That's why they spied for Stalin and why Barry voted to the left of Bernie Sanders, and open communist!


    "When the people find that they can vote themselves money, that will herald the end of the republic."
    -Benjamin Franklin
     
  5. pinqy
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    pinqy Gold Member

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    [
    Then how did we manage before 1978? While the lowest now since the late seventies, the employment population ratio is higher than anytime earlier than that.
     
  6. Nova78
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    Nova78 Silver Member

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    Assuming debt at $3 million a minute; $2.5 trillion is spent in entitlements; 49 percent of households are on some kind of government assistance, and $4 billion is added to our debt each day. Our debt is now at $16 trillion, thats why.
     
  7. expat_panama
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    expat_panama Silver Member

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    Good question. You have no answer here so let's look at this together. Here's the record--
    [​IMG]
    --and what we got are long term demographic/cultural trends lasting decades along with short term economic jolts over quarters. Let's add in an 8-year moving average and see where and how big the jolts are--
    [​IMG]
    --we're seeing that today's 58% is nothing like the 58% we had in 1977. For one thing we had a 5% drop in just a few quarters. Never happened before. For another thing we got a plunge that's not coming back up. Never happened before. What we got is something new and very very serious.

    OK, so we're hearing some loonies say all is well because the boomers got rich and retired. That's dumb. We're also hearing other loonies saying millions of lazy bums have all gone on welfare. That's dumb too. My current theory is that the only way millions of people can feed themselves these days is they've all simply left the radar. They've left the legal economy and are working on a cash only basis.

    We've got millions that have either gone into lives of crime or they're working while not getting visas/permits/paying taxes. Hmm, there's not much of a difference there...
     

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