Thread: Record 90.5 Million Out Of Labor Force As Half A Million Drop Out In One Month; Labor

Record 90.5 Million Out Of Labor Force As Half A Million Drop Out In One Month; Labor Force Participation Rate Plunges To 1978 Levels

Submitted by Tyler Durden on 09/06/2013 08:47 -0400

While the Establishment survey data was ugly due to both the miss and the prior downward revisions in the NFP print, the real action was in the Household survey, where we find that the number of people not in the labor force rose by a whopping 516,000 in one month, which in turn increased the total number of people outside the labor force to a record 90.5 million Americans.



And what is even worse, the Labor Force Participation Rate declined from 63.4% to 63.2%: the is the lowest print since August 1978!



Whether or not this means the Fed will continue QE at this point is largely irrelevant: what is more relevant is that the Fed so far has failed miserably at its core mandate: to boost real employment.

http://www.alipac.us/newthread.php?do=newthread&f=19

Financial Crisis Alert: Half A Million People Drop Off Workforce In One Month, Bank of America To Cut 2100 Jobs, Shut 16 offices, HP Has Chopped 22,700 Jobs Since Last Year, Polled Unemployment Soars To March 2012 Levels!

Tuesday, September 10, 2013 7:02
(Before It's News)

ALERT SHOCKING REALIST NEWS Half a million people drop off workforce



Record 90.5 Million Out Of Labor Force As Half A Million Drop Out In One Month; Labor Force Participation Rate Plunges To 1978 Levels

While the Establishment survey data was ugly due to both the miss and the prior downward revisions in the NFP print, the real action was in the Household survey, where we find that the number of people not in the labor force rose by a whopping 516,000 in one month, which in turn increased the total number of people outside the labor force to a record 90.5 million Americans.



And what is even worse, the Labor Force Participation Rate declined from 63.4% to 63.2%: the is the lowest print since August 1978!
http://www.zerohedge.com/news/2013-09-06/record-905-million-out-labor-force-half-million-drop-out-one-month-labor-force-parti

BofA to cut jobs in mortgage business: report
LOS ANGELES (MarketWatch) - Bank of America Corp. BAC -0.07% plans to cut roughly 2,100 jobs at its mortgage business, with demand for loans weakening as interest rates increase, according to a Bloomberg report Monday. The second-largest lender in the U.S. will also close 16 mortgage offices across the country, said the report citing unnamed sources familiar with the matter. About 1,600 employees who helped process home loans were notified of the layoffs on Aug. 29, and the reductions are expected to be completed by Oct. 31, said the report.
http://www.marketwatch.com/story/bofa-to-cut-jobs-in-mortgage-business-report-2013-09-10

zerohedge ‏@zerohedge 5 min
Since Lehman, revolving credit has declined by $165 billion; non-revolving credit has increased by 475BN
HP has chopped 22,700 jobs since last year
HP is slicing jobs at a faster-than-expected rate.

The company has axed 27,700 people from its workforce, out of the the 29,000 it plans to cut, it said Monday in an SEC filing.

HP originally announced the layoff plan in May 2012, saying it would cut 27,000 (about 8% of its workforce) and then, in September, said it would cut 29,000.

HP also said the layoffs would happen very slowly, over about two years, ending at the close of its fiscal 2014 which is October, 2014.

Six months ago, in February, CEO Meg Whitman said HP had axed 15,000 employees, or was about half way done.
Read more: http://www.businessinsider.com/hp-cut-22700-jobs-2013-9#ixzz2eTpQYSkW

Gallup: Unemployment Rate Is 8.6 Percent for August
BLS isn’t the only organization tracking employment. Gallup also assesses the nation’s labor conditions, and according to its data, unemployment rose from 7.8 percent in July to 8.6 percent in August, a jump CNBC describes as “startling.”

When including the individuals who are underemployed, Gallup reports a staggering unemployment rate of 17.7 percent.

Compare that to government figures from July, when the jobless rate was 7.4 percent, or 14 percent when including the underemployed and those who have quit looking, and it seems that there has been a sudden surge in unemployment.

Gallup’s data is based on a 30-day rolling average. The organization says, “because results are not seasonally adjusted, they are not directly comparable to numbers reported by the U.S. Bureau of Labor Statistics, which are based on workers 16 and older.” Gallup tracks data on people 18 and older.

Read more: http://www.moneynews.com/Economy/Gallup-unemployment-BLS-jobless/2013/08/23/id/521925

BLS, We Have A Problem: Polled Unemployment Soars To March 2012 Levels
Read more at http://investmentwatchblog.com

http://www.zerohedge.com/news/2013-0...or-force-parti

Guest Post: The Rise Of The Welfare State

Submitted by Tyler Durden on 09/11/2013 15:54 -0400

Submitted by Lance Roberts of Street Talk Live blog,

It is interesting to note that while the unemployment rate has been falling, currently at 7.3%, it has not been because of a strongly increasing workforce. Rather it has been a function of people leaving the workforce. This, of course, brings up the obvious question of how these people are live if they aren't working. A recent trip to Walmart answered that question.

As I was standing in line, with an assortment of items on my "back to school" shopping list, there was a Hispanic gentleman in front of me with two shopping carts full of groceries and other items. The cashier deftly handled the scanning and quoted the final price to the gentleman who reached into his pocket and pulled out his wallet. What caught my attention was that his wallet was literally about to explode from the amount of cash that was stuffed into it. My first thought was "Wow, this guy is doing alright for himself." However, my moment of admiration quickly turned to admonishment as instead of using some of his hoard of cash - he whipped out his supplemental nutrition assistance card. I literally watched in amazement as the cashier rang up the purchase, handed him the receipt and thanked him for his patronage. Really? This guy just loaded up on groceries using my tax dollars and he gets thanked for "his" patronage. He should be turning around and thanking me instead.

For me, I was stunned. My first thought was to follow the gentleman out into the parking lot and mug him to get my tax dollars back.

However, quickly realizing my first option was unrealistic and illegal, I turned to the cashier and asked a simple question. "How often do you see people using food stamps to buy groceries?" The answer: "Just about every other person."Welcome to 'Merica, The Welfare State.This experience came to mind when I read a great article by Diana Furchtgott-Roth at E21 entitled "When It Pays Not To Work." In this article she cites some alarming statistics:

"Lawrence Lindsey, president and chief executive officer of The Lindsey Group, estimates that if the labor force participation rate were the same today as it was before the recession began, the unemployment rate would be 11.2 percent, rather than 7.3 percent. One reason for this continuing trend is the panoply of government benefits, including unemployment insurance, now available up to 73 weeks, depending on the state. On average, unemployed Americans can receive 53 weeks of unemployment insurance, up from 26 weeks before the recession. Over 8.9 million adults received disability insurance from the Social Security Administration in July 2013, the latest data available. The number of people receiving benefits is 23 percent higher compared to five years earlier and 55 percent higher than 2003. Benefits are higher, too. Recipients get an average of $1,129 monthly, 12 percent more than in 2008 and 35 percent more than in 2003. Over 47 million Americans receive benefits from the Supplemental Nutrition Assistance Program (formerly food stamps), Other elements of the federal safety net include mortgage relief, and Temporary Assistance to Needy Families. The provision of subsidized health care for those earning below 400 percent of the poverty line under the Affordable Care Act, beginning in 2014, will exacerbate this. These programs have expanded in two ways. Eligibility has increased, and the programs have become more generous."

The chart below shows the rise in social benefits as a percentage of real disposable income which is currently near the highest level on record.

The next chart shows the current number of food stamp participants through June of 2013 at 47.8 million with an estimate of cots that will likely exceed $81 billion.



The reality is that when an individual can make more living on welfare than working it is quite easy for a mass number of individuals to simply disappear from the work force. The problem is that such a structural transformation of the workforce is economically damaging long term.Diana summed the problem up well.

"The shrinkage of the labor force has profound implications for future economic performance. Reduced economic growth will lead to steadily higher tax burdens on existing workers, which will in turn discourage labor force participation. This race to the bottom needs to be stopped."

She is absolutely correct. As I showed in my recent missive on long term economic growth we are already experiencing the lowest rate of annualized economic growth in history. With an aging population rapidly moving towards retirement; the structural employment imbalance will lead to far more economic ills in the not so distant future as the drain on welfare programs intensifies as people continue to leave the workforce. As Diana correctly stated "The race to the bottom has to stop." However, as long as the current administration continues to push more support programs, bailouts and extensions of benefits; it simply makes it more profitable to stay at home and live off "government cheese."

http://www.zerohedge.com/news/2013-0...-welfare-state

http://www.alipac.us/f9/getting-majo...enship-287676/