This is the same song and dance we’ve been reporting on now for years, where the unemployment rate falls because more people have left the labor force, not because the economy is booming:
While by now everyone should know the answer, for those curious why the US unemployment rate just slid once more to a meager 5.9%, the lowest print since the summer of 2008, the answer is the same one we have shown every month since 2010: the collapse in the labor force participation rate, which in September slid from an already three decade low 62.8% to 62.7% – the lowest in over 36 years, matching the February 1978 lows.
While the guys at Zero Hedge point out that we are at the lowest point in the labor force rate in 36 years, they also point out this:
And while according to the Household Survey, 232,000 people found jobs, what is more disturbing is that the people not in the labor force, rose to a new record high, increasing by 315,000 to 92.6 million!
There you have it. Almost 1/3rd of America’s population is not in the labor force. Talk about redistribution of wealth.
Someone let the Europeans know that Obama is leading us right in their footsteps and before too long we’ll be as socialist as they are.