As has been explained on this board dozens of times....and as everyone knows..... the reason the Unemployment Rate has been dropping is for the WRONG REASON.
It's not dropping because Obama's policies have generated so many jobs....it has dropped because so many people have dropped out of the pool of people COUNTED.
In other words, Obama has used slight of hand. It can be a little complicated to follow but he's basically dropped the number UNEMPLOYED by making the pool of those counted smaller.
The Labor Participation Rate has dropped to its lowest level in over 30 years.
Here is a visual:
View attachment 33535
Can you say "Baby Boomers?"
Good Lord. Really? (roll eyes)
Since late 2007, the U.S. labor force has shrunk significantly, raising questions about where former workers have gone and why.
Now the White House Council of Economic Advisers says it has found answers and has compiled them into a
detailed research report released Thursday.
As it turns out, most of the missing workers have been hiding in plain sight: They are retiring baby boomers.
"In 2008, the U.S. economy collided with two historic forces. The first force was the Great Recession," the report said. And the second was "the demographic inflection point" when the oldest boomers, born in 1946, became eligible for Social Security early-retirement benefits.
That age shift explains a lot about what's been happening with the labor force participants, defined as people who have jobs or want them. So a 62-year-old who retires would not be part of the country's available labor pool.
Over the past seven years, the labor force, as a share of the overall population, has fallen from 65.9 percent to 62.8 percent, a decline of 3.1 percentage points.
Economists have been arguing over the reasons for this dwindling labor supply, with some conservatives assigning nearly all of the blame to President Obama's economic policies.
But the CEA report concludes most of the decline, 1.6 percentage point, is due to retirements.
Latest Wrinkle In The Jobs Debate Blame The Boomers NPR