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For much of the last year, the ranks of these labor force dropouts were not changing rapidly, said Thomas Nardone, a Labor Department economist who oversees the collection of the unemployment data.
This disappearance of several million workers — as labor force dropouts they are not factored into the jobless rate — has meant continued labor market weakness, which goes far to explain why wage increases remain so elusive.
In a recently released draft of his paper, which he will present at a Federal Reserve conference in Boston on Friday, Krueger finds that 44percentt of male, prime-age labor force dropouts say they took pain medication the day prior — which is more than twice the rate reported by employed men.
In a major speech in February, Ms. Yellen highlighted not only the elevated unemployment rate, but also long-term joblessness, the high poverty rate, sluggish wage growth, labor force dropouts and homelessness as major reasons for the Fed to continue the stimulus.
Yes, but you'd have to assume that all of the growth in the number of labor force dropouts is a result of discouragement about the job market, as opposed to other factors like the wave of baby boomers now hitting retirement age.
If, however, these labor force dropouts have no intention of returning to work, then the labor market is tight, with few potential workers available to fill open jobs.
Similar(53)
That is, labor-force dropouts aren't the only story here.
OTHER labor-force dropouts are harder to count because the government does not support them.
The combination of a rising unemployment rate and a quickening pace of labor-force dropouts is especially worrisome.
In a follow-up survey focusing on these male labor-force dropouts, Krueger found that these were serious habits.
The jobless rate is officially 6.7percentt, but that only counts people who are actively seeking work — not labor-force dropouts.
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