Quote:
Originally Posted by ernie
Over the last several months the unemployment rate has continued to hold steady and even decline and people are returning to the workforce.
In addition, much of the drop in participation in the job market was due to retirements in the baby boomer generation. Some was due to people legitimately dropping out but not all of it. The retirement cause will continue to influence things for more years yet.
That said, the labor market is considered at full employment and since September a greater percentage are entering the market. And most of those returning are the less educated, disabled or older workers as the service economy picks up (because people have money to spend). Companies have also begun to shift to hiring unskilled workers and training them...something they don't need to do during times of high unemployment and declining participation rates.
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The other factor is the relatively flat wage growth...like 1% a year for most of the last two terms. Awesome for the 1%.