Today’s Job Report: Unemployed Far More Likely to Drop Out Than Find a Job

[Donnachaidh]

http://www.newdeal20.org/2011/02/04/todays-job-report-unemployed-far-more-likely-to-drop-out-than-find-a-job-35001/

A closer look at today’s job numbers shows we’re still deep in a crisis.

While today’s jobs numbers show the unemployment rate has gone down, don’t call it a recovery just yet. Less jobs were created than expected — it’s not that more people are finding work, it’s that they’re dropping out of the labor force altogether.



The percentage of unemployed who will drop out of the labor force is increasing, gaining over those who will find a job. This is unique in the post-World War II economy — and only getting worse.



More and more will fall into this hole as the 99ers lose their unemployment benefits. Worse, while President Obama talks of wanting to “win the future,” it looks bleak for those who experience such long spells of unemployment, which harms their financial outlook. The longer they spend without work, the more they are likely to stay permanently out of the workforce. And we lose too, as we miss out on their productivity (and of course the taxes they would be spending if they brought in regular paychecks).

More at the link --

[somone]

1. The more unemployed, the better for corporate CEOs

[ixion]

2. It's okay. The Banksters and Wall St. Fat Cats are having a great year

and that's all that really matters. :sarcasm:

[Veronica.Franco]

3. My ex brother in law committed suicide last summer ...

He couldn't find a job and provide for his children so he decided they'd be better off if he were dead and had social security benefits ... his little girls are devastated ... how are the bankers and wall street doing? ... hope they're not hurting too much ...

[jtown1123]

8. Devastating. What a cruel world we live in.

[Veronica.Franco]

10. I am beyond numb with anger and disgust ...

WE live in a third world country where politicians and bankers do as they please and the rest of us are expendable ...

[BzaDem]

4. This is totally wrong. It is amazing how many supposed analysts (like at your link) can't read an

employment report.

The BLS made a population adjustment to the January numbers, but not the December numbers. Therefore, you cannot compare the January numbers and the December numbers. If you do, you will get the utter garbage that is in that diagram. It is comparing apples and oranges -- data from two different baselines. It is utterly useless.

The only way you can actually compare December and January is if you apply the adjustment to BOTH (or to NETHER). And if you do that, you show exactly ZERO change in the labor force, 600k fewer unemployed, and 600k more employed. That's why the Bureau of labor statistics SPECIFICALLY says:

"The unemployment rate (9.0 percent) declined by 0.4 percentage point for the second month in a row. (See table A-1.) The number of unemployed persons decreased by about 600,000 in January to 13.9 million, while the labor force was unchanged. (Based on data adjusted for updated population controls. See table C.)"

http://www.bls.gov/news.release/empsit.nr0.htm

Just in case it wasn't clear the first time, I am going to repeat this three more times, since there have been at least 3 posts getting this wrong so far.

while the labor force was unchanged.

while the labor force was unchanged.

while the labor force was unchanged.

[phleshdef]

5. This is the most valuable piece of info I've read today.

This should probably be an OP if it isn't all ready.

[BzaDem]

6. Will do. n/t

[RKP5637]

9. +1, n/t

[Newest Reality]

7. What a way to go ...

Collateral damage in an economic war left undeclared? The prisoners of war become refugees.

The casualties limp away, bruised and bloodied, mired in devastation and destitution. The Underclass grows and spreads beneath the jealous, watchful eye of predatory capitalistic drones. The homeless try to avoid land-mines of law that send them to private gulags for prison labor.

[hfojvt]

11. Why should that be a bad thing?

I myself have long looked forward to the day when I could drop out of the labor force. I'd do it tomorrow if I could afford to.

Many, many people in this country work when they really have other options. The other options not being stealing, starving or selling drugs. These people a) have working spouses and could, at least in theory, live on just one income or b) are retired and collecting pensions and could, at least in theory, live on their retirement income or c) are alreadt wealthy and could, at least in theory, live on their wealth. To pick a very prominent example of that - Keith Olberman. Given that he made upwards of $40 million over the last seven years, there is no real NEED for him to get another job. Not that there are millions of people like that, but there are thousands of them. It is not necessarily a huge hardship when people drop out of the labor force. If it was, then logically, those people would still be looking for work.