4 ms·
> The unemployment rate is not a good metric. The labor force participation rate is more inclusive LFP rate is not better than the unemployment rate. There are
by baron816 10y ago
> The unemployment rate is not a good metric. The labor force participation rate is more inclusive
LFP rate is not better than the unemployment rate. There are a lot of factors that go into labor force participation, and demographics is probably the biggest. It peaked in the late 90s and has pretty much followed the same downward trend since:
http://www.tradingeconomics.com/united-states/labor-force-participation-rate http://www.tradingeconomics.com/united-states/labor-force-pa...
- dforrestwilson1 10y agoYou're making my point for me. Demographics matter. The older bubble demographic nearing retirement, and the new bubble demographic is not taking up the slack. http://www.randalolson.com/wp-content/uploads/united_states_population_pyramid.jpg http://www.randalolson.com/wp-content/uploads/united_states_... Unemployment also ignores the disability insurance bubble.
- stinkytaco 10y agoNot taking up the slack implies there's something wrong with the new bubble demographic. There appears to be less slack to take up. As you pointed out, lower quality jobs.
- pessimizer 10y agoThat's why you use the prime age (25-54) employment rate: http://data.bls.gov/timeseries/LNS12300060 http://data.bls.gov/timeseries/LNS12300060 which has only clawed about halfway back since the property bubble burst (and which has been stagnant this year to date.)