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Something I had suspected, but this is the first report I have seen claiming that the US work force is shrinking dramatically.

About 1.7 million Americans opted out of the workforce from July through December, representing a 1.1 percent drop that marks the biggest six-month decrease since 1961, the Labor Department report showed. The share of the population in the labor force last month fell to the lowest level in 24 years.

The so-called underemployment rate — which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking — rose to 17.3 percent in December from 17.2 percent.

In an ideal world this is not a terrible situation. Discouraged workers might be returning to school or preparing to work for themselves. Of course there are also going to be incentives for work in the black market, including criminal activity.

The participation rate–the percent of population in the workforce–has fallen to 64.6% in the US. That is the lowest rate in 25 years, but I think pretty high for the developed world.

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  1. from my point of view i think, according to the macroeconomic theory, the Full Empolyment(FE)which the point that AD equels to the AS, and intersect with LRAS, due to the worldwide economic recession, the AD has decreased, it also cause the unempolyment rate increase. the LRAS’s development is depended on the high porduct effiency, the high techonolgy eliminate the unskilled workers. so many people go back to school to study. it is the way for them to get more techonolgy skills and have more opportunities to work~

  2. Well,the situation is quite opposite here in China,Tianjin seems have a lack of work force: according to the statistics took from 100 firms in TEDA (Tianjin Economic-Technological Development Area),3000 empty positions are reday for took down by those who are searching for jobs.However, 86% of these are sort of operating post,which apprentlly does not fit the big number of hi-grade American (As shown in picture) unemployees….Otherwise they gonna fly here and earn some RMB back home……

  3. I agree with the view of ” Discouraged workers might be returning to school or preparing to work for themselves”
    Nowadays,so many people wanna go aboard to study,especially ,USA is quite popular country ,government also got the benefit from these foreigners ,and I think they should use this fund to encourage theirs citizen return to the school” .
    In China ,I have heard about the news is “The reason why do graduate students wanna learn postgraduate course is that they can not find the job” ,this is not a opposit way to deal,although they are passive ,they also can learn something in the university.What about others idea?

  4. Well, I think this is good material to read,this is good example. Also it is a way of how to analysis the things in reality, and maybe it is good for us.

  5. Good points, I think I will definitely subscribe! I’ll go and read some more! What do you see the future of this being?

  6. When I was looking at this picture, I was reaaaally astonished! It is clear that this man has got a great academic degree. As far as I am concerned, such kind of men can have a high-salary and satisfied job inevitably. But during financial crisis, everything is possible. More and more firms tend to lay off employees to keep their costs at a lower level.
    If the unemployment benefit is high, people who lose their jobs have less incentives to find work. However, one of those people choose to be reeducated so that they can become more all-around and have better skill for some specific jobs.

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