The government's definition of the labor force is all individuals 16 years of age and older, who are employed or seeking employment. It does not include students; retirees; anyone with unreported income, or ,"discouraged" workers.-'Good' Jobs Report Has Dark Side
What's the real story? The "participation rate" is at a 27-year low! It compares those already employed or still looking for work with everyone else left over. Those who have simply given up looking for a job are then magically not counted as being "unemployed".
Stepping on the heels of the Bureau of Labor Statistics release of the employment figures, Tyler Durden at Zero Hedge pointed out that, based on the 25 year average of employment participation of 66.1%, U-3 unemployment ought to be at 11.6%—quite a bit higher than the current 8.9% headline number.
This points to something that a lot of commentators of the BLS’s numbers have been saying for a while: The number of individuals in the labor market as defined by the BLS has been steadily dropping. But it hasn’t been because of some sudden demographic shock—it’s been because more people have been unemployed for more than two years.
So-called “Ninety-Niners”—people who have been unemployed for more than 99 weeks, and have therefore run out of unemployment insurance—are dropping out of the BLS accounting for unemployment.-Sustained Unemployment Confirms The Failure of QE-2
Ain't government amazing! It can create just about anything from thin air!