Today the U.S. Department of Labor reported that the economy created a meager 115,000 jobs in April, but the unemployment rate fell to 8.1 percent. Though the headline number indicated job creation, the total employment level for the month actually fell 169,000. The disparity comes from a drop in the labor force participation rate, which represents the level of Americans actively looking for jobs or otherwise employed. The labor force participation rate declined from 63.8 percent to 63.6 percent, its lowest level since December 1981.
In the same vein, the amount of discouraged workers swelled from 865,000 to 968,000, an increase of 12 percent. Those working part-time for economic reasons surged 181,000 to more than 7.8 million.
“In the weakest recovery since the Great Depression, more than four-fifths of the reduction in unemployment has been accomplished by a dropping adult labor force participation rate — essentially persuading adults they don’t need a job, or the job they could find is not worth having,” said University of Maryland economist Peter Morici.
