Labor Participation Rate

May 24, 2023

Millions of men and women in the US. are not looking for work, about 1/3 of the labor force. They have given up! Most are living on state and federal benefits like SNAP, Medicaid, childcare credits, stimulus payments, unemployment, free lunches, disability benefits, home energy assistance, eviction relief, housing assistance, Earned tax credits, and many more.

Labor participation is calculated as “unemployed” + “employed” divided by Adult population. Currently calculated at 62% in the US. This means about 60 to 80 million workers are not working, See chart above.

Of course, millions of the unemployed cannot work due to education, disability, drug addiction, retirement, job skills, language barriers, drug tests, location, transportation, etc. However, if just 10% of the unemployed started back working, about 6-7 million workers, there would be no labor shortage. The problem is incentives to work or not to work.

Here is a short list of factors that affect unemployment:

~shift from mfg. to service jobs. Jobs moved to Mexico and China.

-Federal laws on certain industries like mining and oil.

~global competition and unfair trade practices

~welfare benefits, rent ceilings and student debt pauses

~video gaming (job searches decline when new games are released)

-minimum wage increases (always reduces employment)

~oil prices, inflation, flat economic growth, high interest rates

~employment tests, including drug screening

~unions

~job skills not being taught in HS/trade school/colleges. Math scores have dropped dramatically! College degrees like “gender studies, and “Equity.”

~employment laws

~illegal immigration

All of these factors can be addressed by local and Federal governments. The problem is we have too many ignorant loons in public office. Sad but true!