Who Is Dropping Out Of The Labor Force, and Why? January 14, 2014 Who Is Dropping Out Of The Labor Force, and Why? By Diana Furchtgott-Roth
Although many economic indicators are heading in a positive direction, last week's December jobs report highlighted the problem of the declining labor force participation rate, the percentage of people aged 16 and over who choose to work or look for work.
The labor force participation rate moved back to 62.8 percent from its November level of 63 percent. In 2007, before the recession, 66 percent of Americans were in the labor force. Today's levels are equivalent to 1978, before the Reagan Revolution and the movement of women into the labor force during the 1980s.
Who is dropping out, and why?
A popular view is that labor force participation is declining because older people are retiring. But since 2000 the labor force participation rates of workers 55 and over have been rising steadily, and the labor force participation rates of workers between 16 and 54 have been declining. .... .... ....
It has got to suck to be a youngster in today's economy. I can find a number of experienced, work- ethical, no-drama, middle-aged and oldsters who just want a job, not necessarily looking to climb the ladder. A young hipster just can't compete.
Quote: Sanguine wrote in post #2It has got to suck to be a youngster in today's economy. I can find a number of experienced, work- ethical, no-drama, middle-aged and oldsters who just want a job, not necessarily looking to climb the ladder. A young hipster just can't compete.
I agree.
Here's my perspective. I was given a lot of grief for saying I understood the complaints of the very first members of Occupy Wall Street
Before sundry statists, progressives, and anarchists got involved. i.e. before occupy Wall Street hit the national media, I saw some interviews of a rag tag band of young people and a few elders supporting them. They all said pretty much the same thing. The young people had done what the adults in their lives advised. Get in debt and get a college education. The jobs that they would be eligible for upon graduation would be well worth it. No one had a clue what went wrong, but they knew something was very wrong when there wasn't even the opportunity of getting a job.
They knew wall street and international finance were making money hand over fist and in error blamed them as the sole cause of the poor job market.
What was missing from the conversation was the fact the big government and crony capitalists had joined in exporting jobs at all levels, and importing illegal and legal workers who paid either no or very partial taxes, and were subsidized by government transfers to which they technically were not entitled. However being 'disadvantage minorities' it was illegal and highly un PC to require proof of eligibility for the freebies. In turn those 'fortunate' enough to have a job were subject to a heaver and heaver tax burden.
For a long time the transfer of wealth from the middle class of the US, inflation, and a softening job market were hidden by jimmied statistics, lower than market interest rates on loans, cheap electronic toys, and analysts pimping the notion that the Fed had conquered economic down turns; your income, the value of your assets in particular your home, were on an never ending up swing.
Happy Days were where gain and were never going away. Well our global statist chickens have come home to roost. Ironically most young people have been educated to believe that the cause will be the cure: large, statist, micro managing, nanny state government.