The Federal Reserve may continue to sell the fallacious idea that the labor market is improving, but public data suggest quite the contrary. In fact, after weak April and May jobs reports, and a lower-than-expected June jobs payroll report, we have the latest on the labor force participation rate, a statistic we have to pay more attention to.
The labor force participation rate fell to a 38-year low as the number of Americans not in the labor force increased yet again. It soared 640,000 last month to a record 93.6 million with a rate of 62.6 percent. This is a 38-year low and hasn’t been seen since Sept. 1977.
Even with the Fed-induced jobs boom, the labor force participation rate can’t edge any higher.
Here is what ZeroHedge wrote on the latest finding:
“End result: with the civilian employment to population ratio dropping from last month to 59.3%, one can easily on the chart below why there will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time.”
The blog also published this chart correlating with its statement:
I want to know what percentage of those working are employed by private companies as opposed to government work.