The falling US labor force participation rate is not just a demographic issue

This is a quick piece here on the labor participation rate, following up on the piece I wrote last week about the jobs numbers not being consistent with recession. Mike Shedlock at Mish's Global Economic Trend Analysis and Bill McBride at Calculated Risk have put up posts with opposing views on the now marked decline in US labor force participation.

The question is why is this labor force participation rate falling so steeply. Mish looks at some predictions for the rates fall as the US population ages and he finds a much more accelerated fall than was predicted. In his view this supports the view that much of the fall is recession- or economy-driven. Bill McBride looks at the 35-44 year-old cohort and finds no statistical anomalies in the falloff in labor participation and concludes that ...


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