Those not in the labor force surges to another record at 93,770,000.
The latest employment figures did not help the market. While the unemployment rate remained unchanged this is largely being driven by the massive number of Americans not in the labor force. This is the biggest employment story going on for a couple of years but is completely ignored by the media. It is also conveniently ignored by the unemployment rate that only measures those “in the labor force” which is a very generous range. A large part of the not in the labor force group has come from people simply being unable to find work in this low wage economy. And then the media acts shocked that people like Trump and Bernie Sanders are gaining traction. The media would like to continue to paint a Pollyanna case of the economy but that is just not the truth. We recently hit a record 93,770,000 Americans that are no longer in the labor force. 1 out of 3 Americans are not in the labor force while 1 out of 3 workers are supporting the rest of the country.
Not in the labor force growth
Those not in the labor force has grown by a stunning 11 million in the last five years alone. Isn’t this a recovery? Are we not in the middle of incredible growth and expansion? It really depends on how you define it. The stock market is being juiced by easy monetary policy that is benefitting a small number of Americans while technology stocks go up because of delusional venture capital money. It is all over hyped and the spin machinery is getting overheated.
Just look at the growth of those not in the labor force:
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