Labor force catastrophe with more than half a million dropping out of the labor force: Record 94.6 million Americans not in the labor force.
The latest employment report was a complete disaster. The only reason the unemployment rate remained unchanged was because a stunning 579,000 people dropped out of the labor force in one month. We now have a record 94.6 million Americans categorized as not being in the labor force. This massive drop cannot be explained by the weak narrative that many people are simply entering retirement. We’ve already gone into great detail how retirement is a pipedream for many and the new retirement plan for many older Americans is working until the wheels go flying off. To demonstrate how insane the stock market is, there was a surge because now market players sense that the Fed is going to continue its low rate policy that essentially keeps distorted interest rates going. What we are witnessing in the employment market is simply statistical shenanigans that even the public doesn’t believe anymore.
Wage Apocalypse for the American man: Typical male worker earned less in 2014 than in 1973.
The middle class destruction train is moving full steam ahead if we are to examine Census figures closely. And the American male has a first-class ticket on this express train to wage destruction. According to the recently released Census figures full-time working males are earning less than they did in 1973 adjusting for inflation. Purchasing power matters greatly even though there is this ongoing narrative that we are experiencing very little inflation. Has anyone taken a look at housing costs, healthcare costs, or even college tuition? The problem at the core of this salary stagnation is that productivity gains are simply not trickling down to the typical worker. The Great Recession largely smashed male employment. Males lost 3 out of 4 jobs in the Great Recession. The financial crisis impacted everyone, male and female, but there is some interesting data to be examined from the figures for full-time working males.
The failed recovery in 9 charts: 9 charts highlighting the lackluster performance of the economy.
The mainstream press simply measures a recovery by looking at the stock market even though very little of the gains here are trickling down to regular families. It should be noted that many Americans are frustrated with the economy because to them, it still feels like a recession. Low-wages permeate the landscape, housing costs are jumping, college tuition is off the charts, and saving for retirement seems like a distant dream. Those clustered away in bubbles may feel that this is not the case but there is clear evidence highlighting how weak this recovery has turned out to be. There is a reason that we now have a boom in dollar stores across the nation. The top occupations across the country pay $10 an hour or less and carry very little in the way of benefits. Let us take a look at some charts to show what this recovery truly looks like.
The increasing odds that you will die working: The extinction of retirement and the growing old age labor force.
I was greeted by an older gentleman at a local Target store. He slowly smiled and said hello. I nodded and said hello as he proceeded to greet other shoppers. Leaving the store I was greeted by an older cashier. Over the last decade, the retail labor force is seeing a growing number of older Americans. Many don’t envision retirement as working in a low-wage job but that is simply the way of life for many. The BLS estimates that labor force participation rate for those 65 to 74 years of age is going to increase to 31.9 percent in 2022. That is an incredibly high number of older Americans eligible for Social Security still working in the labor force. This is happening as younger Americans make up a smaller portion of the labor force and as many more Americans enter into college. Yet one thing that is rarely discussed is that many older Americans are going to work until they die out of necessity. Not a few. Not a couple. A large portion of older Americans are working deep into old age because they can’t afford to retire.