Last Friday, and article at ABCNews.com indicated that the Labor Department had released the October jobs report for America. Amidst a government shutdown, the economy was still able to add 204,000 jobs in October. Unfortunately, the unemployment rate ticked up, as expected, to 7.3%
The labor force participation rate fell 0.4 percent to a 35 year low of 62.8%
This October jobs report is expected to come under extreme scrutiny, however. Furloughed workers who are out of work for over a week are considered unemployed. The government shutdown, as we all remember, lasted 16 days.
The unemployment rate is never a full picture of the economy, as we like to remind you here on Out Of Our Mind.
Just look at the labor participation rate, which stands at a 35-year low as of this October. The labor participation rate is the percentage is defined as the employment to population ratio. As it goes lower, it indicates that those who are able to work, are not working at all – and not actively looking for work.
“As people continue to leave the labor force, rather than remain unemployed, the labor force participation rate is the lowest it’s been in 35 years,” says Stephen Bronars, senior economist with Welch Consulting. “Some of this is due to the aging of the population, but participation should be increasing during a recovery as more people find work.”
While the November jobs report is expected to reel back in some of the losses featured in October, the outlook for the American jobs economy remains grim.
We would also like to take a moment here on the blog to thank our servicemen and women. Past and present, all of those who serve our country with such bravery deserve our respect, and thanks. Our military personnel put their lives on the line for us each and every day to protect the freedoms promised to us as part of this great country.
We here at Crossroads Consulting consider ourselves ardent patriots. With this, we implore any veterans of the United States Armed Forces to please get in contact with us if you are struggling to find a position upon returning home. We will do whatever we can to assist you on your job search. It is the least we can do for what you have already done for us. Please do not hesitate to reach out.
Again – thank you to our military personnel. Men, women, fathers, mothers, sons, and daughters – today we salute you.
Thank you, veterans.