CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Blogs CEPR Blog Sharp Drop in Unemployment Due to People Leaving the Labor Force

Sharp Drop in Unemployment Due to People Leaving the Labor Force

Print
Written by Dean Baker   
Friday, 10 January 2014 08:46

The headline unemployment rate fell sharply to 6.7 percent in December. However, this is not good news. The drop was almost entirely due to people leaving the labor force as the number of people reported employed in December only rose by 143,000, just enough to keep the employment-to-population ratio constant.

Blacks disproportionately left the labor market, with the labor force participation rate for African Americans dropping by 0.3 percentage points to 60.2 percent, the lowest rate since December of 1977. The rate for African American men fell 0.7 percentage points to 65.6 percent, the lowest on record.

The data on the establishment side was not any brighter with the survey reporting an increase of just 74,000 jobs. Some of this weakness was due to unusually slow growth in health care and restaurant employment. This is likely an anomaly that will be reversed in future months. However, there was also a decline in the index of average weekly hours. This suggests that the economy may be weaker than some of the more  recent optimistic accounts indicated.

Comments (2)Add Comment
The numbers were bad but nothing compared this interpretation!
written by Mike R, January 10, 2014 1:26
BlackRock: Jobs Report Shows Unemployment Is Structural

http://blogs.barrons.com/incomeinvesting/2014/01/10/blackrock-jobs-report-shows-unemployment-is-structural/?mod=BOL_hpp_blog_investing

This fellow does not seem to have absorbed your lessons well. Sigh.
Structural?
written by Benedict@Large, January 11, 2014 2:23
"Structural" is just a word economists use for saying their religion doesn't allow them to do the things necessary to fix things.

Write comment

(Only one link allowed per comment)

This content has been locked. You can no longer post any comments.

busy
 

CEPR.net
Support this blog, donate
Combined Federal Campaign #79613
budget economy education employment Haiti health care housing inequality jobs labor labor market minimum wage OccupyWallSt poverty recession retirement Social Security taxes unemployment unions wages Wall Street women workers working class

+ All tags