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2 million workers dropped out of US labor force in 2013. More than half of Dec. 2013 jobs added were temp. jobs

January 10, 2014

Fundamental transformation on schedule:

1/10/14, “US Lost 2 Million Workers in 2013,” Breitbart, Mike Flynn

“Friday’s December jobs report was a major disappointment, showing the economy gained just 74k jobs last month. Economists had expected the economy to gain around 200k jobs. The unemployment rate, however, dropped to 6.7% as 347k frustrated job-seekers gave up and left the labor force. We are in an upside-down world where a drop in the unemployment rate is a bad sign for the economy.

The overall labor force shrunk dramatically last year. In December 2012, 155.4 million workers had a job or were actively looking for one. Last month, though, 154.9 million were in the labor force, a drop of over 500k Americans.

It is important to remember that the population grew last year. The US adult population grew by around 2.5 million people. If the labor force were the same percentage of the adult population as last year, 2 million more adults would have jobs or be actively looking for employment. Their disappearance is a drag on the economy.

Democrats are currently agitating for an extension in long-term unemployment benefits. They have made it a major political fight, most likely to distract from ObamaCare. The real issue, though, is that we even still need long-term unemployment benefits.“…

  • [Ed. note: Give benefits but call it what it is, welfare.]

(continuing): “The recession officially ended over four years ago and the media is bloated with stories about the economic “recovery,” yet the job market continues to erode.

Oddly, Democrats [and some Republicans] are also expected to make a major push to raise the minimum wage, i.e. starting wage. This has few benefits for the overwhelming majority of Americans, as only around 2% of the workforce makes the starting wage. It would likely cause a modest increase in prices for consumers, but the biggest impact is in reducing the number of first-time jobs. Lifting the starting wage has a mild negative effect on the overall economy by reducing the number of jobs. These negative effects, however, are concentrated on those trying to enter the labor force.

The US should pursue policies that help workers enter or reenter the labor force. Erecting barriers to this suggests the nation may shed more workers in 2014.”

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1/10/14, More Than Half Of December Jobs Added Were Temporary,” Zero Hedge

“Once again, in its sheer panic to tout the quantity, or lack thereof, in the case of the December jobs number, the frenzied media and pundits completely ignored the quality of the jobs gained in the last month of December. Or lack thereof. Because as the simple breakdown below shows, of the 74K jobs gained in December, 55%, or 40K were the worst of the lot when it comes to wages or benefits: temporary jobs.

As for the other job additions? Well, between Temp Help, and the bottom of the barrel paying Retail and Wholesale Trade jobs, the total additions were 111K. Which means all the other, better-paying, job groups saw… a drop of 35K.

In other words, the “recovery” may be lacking in numbers, but at least it is completely lacking in quality. And oh yes: remember – when it is snowing outside, employers only hire temp workers, hence it’s the weather’s fault.”

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