The Atlanta Federal Reserve has an interesting explanation for why America has reached a 40-year record-low rate for domestic labor participation, with 94.6 million people currently unemployed. In their own words, they pointedly remarked, “Generally speaking, people in the 25–54 age group are the most likely to participate in the labor market. These so-called prime-age individuals are less likely to be making retirement decisions than older individuals and less likely to be enrolled in schooling or training than younger individuals.”
They then summarized that the “decrease in labor force participation among prime-age individuals has been driven mostly by the share who say they currently don’t want a job. As of December 2014, prime-age labor force participation was 2.4 percentage points below its prerecession average. Of that, 0.5 percentage point is accounted for by a higher share who indicate they currently want a job; 2 percentage points can be attributed to a higher share who say they currently don’t want a job.” Yes, you read that correctly, they actually think that the U.S. has 94.6 million people unemployed predominantly because they simply don’t want to work!
Its not that the historical driver of 80% of U.S employment, small business formation, now has a firm exit rate higher than a firm entry rate.
Its not that the U.S. educational system has left many woefully unemployable, regarding their actual usable labor skills.
Its not that the $4.5 trillion in Fed credit, which was pumped into the S&P during the post-2008 depression era, has left the U.S. without an actual economy.
Its not that millions of Americans, aged 55 and over, are unable to leave the work force due to an endemic lack of savings and asset inflation protection.
Its not that the lack of retirement has created an artificial ceiling that keeps younger Americans from attaining better-paying jobs and promotions.
Its not that the millennial generation has been attending college indefinitely and accumulated $1 trillion in debt, due to the terrifying prospects of entering the work force and honoring the debt on those very taxpayer-subsidized loans.
Its not that the current Cloward–Piven welfare state structure has incentivized collecting grandiose handouts from the government, while grossly punishing those who actually work for their living.
No, it’s clearly because the the majority of the millennial generation is content with perpetually living in their parents’ basements, frequenting Starbucks coffee shops for internet use and embracing their asset-less, work-free lives!
Sources:
FRBAtlanta.org
ZeroHedge.com
