Daniel Lacalle

US: The Weakest Jobs Recovery On Record

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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


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