Has the United States economy lost its momentum?
The national unemployment rate declined to a 16-year low of 4.3 percent, leaving many analysts dismayed. The latest figures suggest that the labor market has lost some of its momentum. The question is now: can the Federal Reserve keep the boom going?
One interesting statistic that has flown under the radar so far is the labor force participation rate.
According to the Bureau of Labor Statistics, 608,000 Americans exited the labor force, boosting the total to 94.983 million in May. The labor force participation rate now stands at 62.7 percent, which is the lowest in about 40 years.
Here are two great charts courtesy of Zero Hedge:
Like this article? Get ECN delivered to your inbox daily. Subscribe here.
Leave a Comment