The headline number was… not good. The underlying numbers were… worse. Tyler Durden explains:
So much for yet another “above consensus” recovery, and what’s worse it is, well, about to get even worse, because while the Fed keeps baning some illusory drum that slack in the economy is almost non-existent, the reality is that in March the number of people who dropped out of the labor force rose by yet another 277K, up 2.1 million in the past year, and has reached a record 93.175 million.
Indicatively, this means that the labor force participation rate dropped once more, from 62.8% to 62.7%, a level seen back in February 1978, even as the BLS reported that the entire labor force actually declined for the second consecutive month, down almost 100K in March to 156,906.
Three decades of labor force participation growth thrown out the window since 2007 — and the trend line hasn’t shown one sign of improvement since the “recovery” began in June, 2009. And, no, it isn’t all due to Baby Boomer retirees leaving the workforce is droves, because the proportion of older workers has grown during this period.
We have dependency crowding out productivity and age crowding out youth — that’s a recipe for even worse growth in the future, as young people have fewer incentives and opportunities to gain the skills they’ll need.
But they’ll keep voting Democrat until we find away around “War on…” nonsense.