A Look at Labor Participation Problems

Your next video will start in

Recommended Videos

  • Info

  • Comments


July 5 (Bloomberg) -- On today's "Chart Attack," Prestige Economics President Jason Schenker and Bloomberg's Adam Johnson look at the labor economy on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Time for "chart attack" where we show you some charts that will make you smarter and we also hope it will make you money.

Jason schenker sees something interesting, labor force participation.

You think this is a big deal.

Part of the reason we have seen the unemployment rate falling over the last few years is a decline in the labor force participation rate.

Fewer people.

Being counted.

That is right.

This is the second month in a row where we have seen the labor to the patient rate go up.

Area -- participation rate go up.

Here is why this is a big deal.

This is a nasty trend.

Fewer people are being counted.

Before we get to the recent data, why are fewer people being counted?

If we were to break this out by age groups, you would see workers that are 55 and older, it is at the highest lever -- level ever.

We have even seen a decline in in the groups between those.

In other words, if kids cannot get jobs -- kids cannot get jobs out of college.

That is right.

Ben bernanke has talked about this as a big problem because it evil cannot get into the workforce, how can they -- if people cannot get into the workforce, how can they move up.

Is the key, they might be turning.

-- this is the key area of it might he turning -- it might be turning.

It is what the fed said about unemployment targeting.

If it is better that more people to dissipate in the labor force, why has unemployment actually gone up?

It is because the denominator is bigger.

More people are participating, but the fed policy is targeting the unemployment rate.

Ben bernanke has said 6.5% is the target.

And his most recent press conference he said the real natural rate is between 5% and 6%. if more people come back into the labor force, it will keep the unemployment rate higher for longer.

Which means there will be more qe support for longer.

We have the top 10 stocks you need to focus on.

Plus, the jobs numbers might be good, but an app could make them better.


This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change