The Story behind the Jobs Report
Though I have heard a few different reports on the job market results for April, I hadn't heard this spin on the numbers. Perhaps my head was in the sand!!
Jim points out though we had 288,000 jobs added and unemployment fell to 6.3% that it wasn't all great news. Part of the cause was what seems a continuing decline in "participation" in the work force.
Jim notes the Labor Force Particapation Rate fell o 62.8%. Though we all know the number of retirees will be a growing part of our population over time, considering that 37.2% or over 1/3 of the population able to work are not working or choose not to work is a daunting prospect.
Though the short term impacts is the movement of money from stocks to bonds and the related lessen pressure for mortgage rates to rise, it doesn't bode well to have a decreasing number of workers completing all the work.
Lets hope as the economy improves that the participation rate will also ramp up even if it means reported unemployment nudges slightly higher until those new partcipant locate work!!