This article was published by the McAlvany Intelligence Advisor on Monday, February 5, 2018:
There were two numbers buried in Friday’s jobs report from the BLS that portend difficulty for the economy: The number unemployed remains at 6.7 million, and the labor participation rate remains stuck at 62.7 percent. In September 2015 that latter number was 62.4. In 2000 it was 67.3 percent.
How is that possible? With the unfettering of the economy through deregulation and now the recapture and reinvestment of tax dollars that were previously being directed to Washington, just about every economic indicator is green. Why aren’t these millions reentering the workforce?
There’s good news and bad news. Some of those people are leaving the workforce and retiring. Their savings, pension, profit-sharing and 401(k) plans are reflecting the performance of the stock market and consequently are allowing them to recalibrate their retirement plans: they’re retiring sooner than later.
Some of the younger cohort – age 25-54 – are going back to school to learn the skills they need for the new economy.
But others are content just to stay right where they are: