by Tyler Durden, published April 3, 2015
So much for yet another “above consensus” recovery, and what’s worse it is, well, about to get even worse, because while the Fed keeps baning some illusory drum that slack in the economy is almost non-existent, the reality is that in March the number of people who dropped out of the labor force rose by yet another 277K, up 2.1 million in the past year, and has reached a record 93.175 million.
Indicatively, this means that the labor force participation rate dropped once more, from 62.8% to 62.7%, a level seen back in February 1978, even as the BLS reported that the entire labor force actually declined for the second consecutive month, down almost 100K in March to 156,906.
Why is this important? Because as long as the true employment rate, that of the civilian employment to total population, remains at depression levels, there will be no increases in average hourly earnings.
NDP Note: Remember, the Republicans & Democrats have spent decades getting the country in this mess with trade deals, eliminating worker rights, killing the Middle Class & unions, and being the tools of the rich and big business. They are not going to fix this.
The Democrat nominee and the Republican nominee in 2016 won’t fix it; they will only bring more of the same.