US: The Weakest Jobs Recovery On Record


US unemployment rate is at 6.2%…. or is it?

The US Labor Force plunged -806k to 155.421 million, up just +0.04% Y/Y (+0.73% Y/Y prior).

Most importantly, those Not in the Labor Force surged +988k to 92.018 million, which is the highest on record.

The Workforce Participation Rate fell to 62.81% in April (63.18% prior), the lowest since 1978.

The (U-6) “real” unemployment rate is 12.3%. (Source Boenning & Scattergood, US jobs data)

Additionally, according to the Bureau of Labor Statistics, 20% of all families in the United States do not have a single member that is employed.   62% of all Americans make $20 or less an hour at this point. The number of Americans receiving benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million.


US fake unemployment


Nominal wage growth is also inexistent:


US wage growth


And no, the difference between unemployment and the decline of labour participation is not explained just by  “demographics” and retirements… at all:

Population participation


Meanwhile, debt reaches record level


About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

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