Labor Force Participation Rate Drops

Not a good sign as more workers leave the job market

In July of 2012 the work force participation percentage of all employees (male and female) went down to 63.7% according to the BLS data. That low level has not been seen in over 40 years. That is not a good sign for the overall strength of the recovery.

Work Force Participation

Assuming that there is a significant downsizing of the military and there are no new programs to get jobs for soldiers coming home then the true unemployment levels will not go down for some time.

Author: M V Janulaitis

Victor Janulaitis is the CEO of Janco Associates. He has been a professor at the USC Graduate School of Business and has been a guest lecturer at UCLA and a Graduate School at Harvard University.