It’s misleading to call the economy healthy when so many Americans have given up hope and stopped looking for a job.
(PRWEB) January 10, 2014
According to the Bureau of Labor Statistics, the percentage of people looking for work in 2013 declined at a rate not seen since 1961, with the exception of the decline that took place in 2009 as a result of the Great Recession.
The labor force participation rate declined from 63.6 in January 2013 to 62.8 percent last month. The 0.8 percent annual drop was surpassed only by a 1.2 percent drop in 2009 and a drop of 0.9 percent in 1961. Today’s report means the number of people who quit looking for work has dropped at its sharpest rate in 52 years, with the exception of the drop that took place in 2009.
“The sad, tragic and almost untold story of employment is how many people have quit looking for work,” said Bob Funk, the CEO of Express Employment Professionals and a former Chairman of the Kansas City Federal Reserve. “It’s misleading to call the economy healthy when so many Americans have given up hope and stopped looking for a job.
“Equally troubling, at a time when the economy is thought to be recovering, the rate of decline is accelerating.”
In 2010, the rate declined by 0.3 percent; in 2011 by 0.3 percent; in 2012 by 0.4 percent and in 2013 by 0.8 percent.
“The number of people who have given up on looking for work is growing – just the opposite of what you want to see,” Funk said. “This issue deserves a lot more attention than it is receiving.”
The Department of Labor today announced that the unemployment rate dropped from 7.0 percent in November 2013 to 6.7 percent last month, while the labor force participation rate declined from 63.0 percent to 62.8 percent for the month.