@georgeob1,
Quote Cicerone Imposter:
Quote:According to (I think it was) CNNMoney, the current 5% unemployment is considered a healthy economy.
Quote georgeob1, in response:
Quote:Considered by whom? Have you taken the reduction in work force participation into account?
Clearly, you consider the Labor Force Participation Rate the important standard of economic health. Unfortunately, you don't know much about it, and this "realization" of yours would appear to come from the right wing media, which is always harping on this single figure. For example:
Quote georgeob1:
Quote:I agree the work force population rate is not about population growth. However its value over time is indeed a measure of the relative difference between population growth (or more precisely the growth of the 16-65 year cadre of the population and) the growth of total employment.
No, actually it is not, as I explained before. The Labor Force Participation Rate only measures the percentage of people who are either working or looking for a job. People in the military, people in jail or rehab centers, etc are not part of the ratio. If any of those excluded factors I just mentioned goes up or down significantly, the relationship of the Labor Force Participation Rate to population growth is destroyed. If more people stay in school, whether high school or college, and are not working, the Labor Force Participation Rate goes down. If a big group of people who were employed become unemployed, the Labor Force Participation Rate stays the same. Not much of an indicator of health.
Quote georgeob1:
Quote:The details of what constitutes non participation (retirement, mlitary service, soccer moms etc.) are usually slowly changing and irrelevant.
Again, you got that wrong. Over-65 retirees are exempted from the count, which goes through age 64. Under-65 retirees are counted as those who are not looking for a job, as are soccer moms. Active military personnel are exempted from the count as well. Students, whether high school or college, are not exempted from the count.
Besides, there is a DIFFERENT statistic which actually does measure the relation of population growth to the number of jobs, the Employment-Population Ratio. It doesn't make exceptions for retired people, jailbirds, rehabbers or any of the others. It's just the ratio of the number of employed people to the population, (minus convicts and those on active duty in the Armed Services). It even includes very old people, unless limited by age in the title.
I have included a chart which gives the employment population ratio since 1993, for the prime working years, age 25-54. This is a much, much better example of the relationship to population increase to employment than what you were trying to use.
As you can see, employment in the prime working age is now higher than when Obama took over in the middle of the job hemorrhage of 2008-9, and it is clearly headed up even higher.
This a chart of a healthy economy.