How bad is it? AEI’s James Pethokoukis explains: “It shows the U.S. labor market remains in a deep depression, generating few jobs and little if [any] income growth.”
The perverse drop in the unemployment rate is a byproduct, as we have come to learn, of the hundreds of thousands of unemployed Americans who quit looking for work last month — four times as many as those who found jobs. Responding to a request for comment, the Manhattan Institute’s Diana Furchtgott-Roth — former Department of Labor chief economist — tells us:
It’s a tragedy that more Americans are dropping out of the labor force. The labor force participation rate, at 63.5 percent, is the same as in September 1981, at the beginning of the decade when millions of women marched into the labor force. We’re moving backwards to a dependency society.