HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Sharp Drop in Unemploymen...

Fri Jan 10, 2014, 04:10 PM

 

Sharp Drop in Unemployment Due to People Leaving the Labor Force

The headline unemployment rate fell sharply to 6.7 percent in December. However, this is not good news. The drop was almost entirely due to people leaving the labor force as the number of people reported employed in December only rose by 143,000, just enough to keep the employment-to-population ratio constant.

Blacks disproportionately left the labor market, with the labor force participation rate for African Americans dropping by 0.3 percentage points to 60.2 percent, the lowest rate since December of 1977. The rate for African American men fell 0.7 percentage points to 65.6 percent, the lowest on record.

The data on the establishment side was not any brighter with the survey reporting an increase of just 74,000 jobs. Some of this weakness was due to unusually slow growth in health care and restaurant employment. This is likely an anomaly that will be reversed in future months. However, there was also a decline in the index of average weekly hours. This suggests that the economy may be weaker than some of the more recent optimistic accounts indicated.

http://www.cepr.net/index.php/blogs/cepr-blog/drop-in-unemployment-due-to-people-leaving-the-labor-force

2 replies, 638 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 2 replies Author Time Post
Reply Sharp Drop in Unemployment Due to People Leaving the Labor Force (Original post)
El_Johns Jan 2014 OP
Agnosticsherbet Jan 2014 #1
democratisphere Jan 2014 #2

Response to El_Johns (Original post)

Fri Jan 10, 2014, 04:20 PM

1. The US needs to reevaluate how they figue unemployment.

Long term unemployed are not that way because they don't want to work. The system is designed to make the government look good, not give a factual account of the state of employment.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Agnosticsherbet (Reply #1)

Fri Jan 10, 2014, 04:24 PM

2. So true!

Make the government look good, specially in a midterm election year!

?hl=ad&t=1389365936

http://www.shadowstats.com/alternate_data/unemployment-charts

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread