I am not a fan of using calculations like the unemployment rate that rely on the definition of the labor force because entry and exit into the labor force can be counter-cyclical: more people exit the labor force when they perceive the economy to be weak, which "helps" a president given the way the unemployment rate is calculated, and vice versa.
Recipients of DI tend to exit the labour force permanently and do no return as cyclical conditions improve.
It just feels that way, thanks to the two-earner household in which women enter and exit the work force according to shifting child-rearing demands.
It has bigger structural issues now, but not 9.5% unemployment's worth.**Do note that this would be higher but for large exits from the labour force, and it's probably safe to assume that the structurally unemployed are more likely than the cyclically unemployed to exit the labour force.
Large numbers of work-capable Americans voluntarily exit the labor force to collect disability, while others spend years at home trying to qualify for the rolls — while their work skills atrophy, he writes.
In particular, SSDI's rules require that applicants be unable to engage in any significant paid work, giving them every incentive to cease working completely to qualify and to avoid rehabilitation — that is, to exit the labor force for good.
Also, overworked mothers are more likely to exit the labor force entirely, typically in male-dominated occupations (Cha 2013).
Hence, there is a non-negligible fraction of individuals that exit the labor force well before they are 65.
"Traditionally when women have lost their jobs, they have been more likely to simply exit the labor force," says Boushey.
