NC labor force participation rate plummets 5.3 percent since May 2008, Reason for unemployment rate drop, Reason for drop in claims, No more employees left to lay off, NC ninth most populous state
“Over the last six months, of the net job creation, 97 percent of that is part-time work,”…Keith Hall, former BLS chief
“The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed in September at 7.1 million. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.”…US Labor Dept. September 2014
“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
Do not be fooled by low information biased media.
Those folks dropping out of the labor force are not mostly older baby boomers.
They are younger people who have given up on finding jobs.
Many of them are not drawing unemployment pay and are not counted in the unemployed numbers.
They also cannot be laid off.
NC is the ninth most populous state and is representative of what is taking place in the US.
Many states have been hit even harder.
From Citizen Wells January 15, 2015.
“Forget the unemployment rate. If you remove enough people from the labor force you will achieve full employment and a low unemployment rate. We have that scenario now. In fact one state, West Virginia, has a labor force participation rate below 50 percent yet the unemployment rate is 6.3 percent.
See what I mean?
Old Abe Lincoln once said “you can’t fool all of the people all of the time.”
From Market Watch January 14, 2015.
“The only state where less than half its civilians work”
“West Virginia quietly passed the ignominious milestone of having less than half of its adult, civilian population in the workforce in November.
State data compiled by the Labor Department shows that West Virginia’s civilian labor participation rate has fallen to 49.8%, from 50% in October. The national rate in December was 62.7%.
The Mountain State is the only state in the history of the series, which goes back to 1976, to have fallen below 50%, though Mississippi at 50.8% isn’t far behind.”
From Citizen Wells January 9, 2015.
“You are being bombarded by the “good news” about employment from the Orwellian mainstream media, low information market news reports and I am certain the White House.
Now for the truth.
The real employment news.
The unemployment rate dropped to 5.6 percent and jobs are being added? Right?
From the US Labor Department data:
There were 456,000 more people not in the labor force in December!
There were supposedly 111,000 more people employed in December???
Hardly cause for celebration, if true, especially with the numbers of part time jobs.
The drop of .2 percent in the labor force participation rate accounts for the .2 percent drop in the unemployment rate.
The labor force participation rate has plummeted 3 percent since Obama took office.
The number of people who could only find part time work is up 756,000 since Obama took office.”
From Jim Clifton Chairman and CEO of Gallup
“The U.S. now ranks not first, not second, not third, but 12th among developed nations in terms of business startup activity. Countries such as Hungary, Denmark, Finland, New Zealand, Sweden, Israel and Italy all have higher startup rates than America does.
We are behind in starting new firms per capita, and this is our single most serious economic problem. Yet it seems like a secret. You never see it mentioned in the media, nor hear from a politician that, for the first time in 35 years, American business deaths now outnumber business births.
The U.S. Census Bureau reports that the total number of new business startups and business closures per year — the birth and death rates of American companies — have crossed for the first time since the measurement began. I am referring to employer businesses, those with one or more employees, the real engines of economic growth. Four hundred thousand new businesses are being born annually nationwide, while 470,000 per year are dying.
Until 2008, startups outpaced business failures by about 100,000 per year. But in the past six years, that number suddenly turned upside down. There has been an underground earthquake. As you read this, we are at minus 70,000 in terms of business survival. The data are very slow coming out of the U.S. Department of Census, via the Small Business Administration, so it lags real time by two years.
Net Number of New U.S. Firms Plummets
Business startups outpaced business failures by about 100,000 per year until 2008. But in the past six years, that number suddenly reversed, and the net number of U.S. startups versus closures is minus 70,000.
My hunch is that no one talks about the birth and death rates of American business because Wall Street and the White House, no matter which party occupies the latter, are two gigantic institutions of persuasion. The White House needs to keep you in the game because their political party needs your vote. Wall Street needs the stock market to boom, even if that boom is fueled by illusion. So both tell us, “The economy is coming back.”
Let’s get one thing clear: This economy is never truly coming back unless we reverse the birth and death trends of American businesses.
It is catastrophic to be dead wrong on the biggest issue of the last 50 years — the issue of where jobs come from. Our leadership keeps thinking that the answer to economic growth and ultimately job creation is more innovation, and we continue to invest billions in it. But an innovation is worthless until an entrepreneur creates a business model for it and turns that innovative idea in something customers will buy. Yet current thinking tells us we’re on the right track and don’t need different strategies, so we continue marching down the path of national decline, believing innovation will save us.”