The non-working American recovery added 451,000 to the not in the labor force category in December alone.
The employment report came out today and what you would take as good news sent the market moving lower. Why? A large number of the jobs added were in retail and food services. The growth in low wage employment caused the overall wage level to dip. But what was more telling and what continues to be ignored by the press is that we now have nearly 93 million Americans in the “not in the labor force” category. In December alone this category surged by 451,000. The market turned sour on a variety of fronts but the labor force participation rate also took a tumble. The spin is that we have many people hitting retirement age and many are going into the sun with large nest eggs. But the reality is, most older Americans are relying on Social Security to keep them one step away from poverty. We just hit a new record for those not in the labor force.
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