Decline Among Younger Men Is Particularly Sharp
Friday's employment figures were terrible across the board, although some have naively interpreted the decline in the headline unemployment rate (from 8.3% to 8.1%) as positive news. Unfortunately there is nothing positive about this change.
As before, the decline is simply an indication of people dropping out of the labor force. This is clearly visible in the labor force participation rate (discussed earlier this year), which has now declined to the lowest level in over 3 decades. In fact the only reason that labor participation in the late 70s was lower than today is that women were still in the process of entering the workforce. Labor force participation among men is now at the lowest level on record - going back to 1948. This includes men with a college education.
What's particularly troubling is the relatively recent sharp drop off in the participation ratio for younger men (between the ages of 20 and 24), which is also at the lowest level on record (chart below).
Once again, this is a structural issue that can not be remedied with monetary policy.
Friday's employment figures were terrible across the board, although some have naively interpreted the decline in the headline unemployment rate (from 8.3% to 8.1%) as positive news. Unfortunately there is nothing positive about this change.
As before, the decline is simply an indication of people dropping out of the labor force. This is clearly visible in the labor force participation rate (discussed earlier this year), which has now declined to the lowest level in over 3 decades. In fact the only reason that labor participation in the late 70s was lower than today is that women were still in the process of entering the workforce. Labor force participation among men is now at the lowest level on record - going back to 1948. This includes men with a college education.
What's particularly troubling is the relatively recent sharp drop off in the participation ratio for younger men (between the ages of 20 and 24), which is also at the lowest level on record (chart below).
Once again, this is a structural issue that can not be remedied with monetary policy.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.