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Where Has America’s Workforce Gone?

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    Former Labor Secretary Elaine Chao on the decreasing size of the country’s labor force.

  • Duration 3:52
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Now let's say only a -- and joining the company now is Elaine -- formal labor secretary under George W.

Bush man secretary.

We heard I'm gonna -- is a startling statistic on Friday.

The labor force shrank.

By one point two million people I've yet to see a convincing explanation as to how -- books.

The labor force could shrink by so many people well over a million people in just one month's you know there's something.

Change the definition.

-- OK let me tell me how did this happen go ahead.

Well basically this.

For those -- interested in why this number rose it's really one point 177 million.

And basically at this is an annual.

Revision.

To the benchmarking so there's a process and we have a huge workforce it's about a 157 million people.

So the monthly data that you are getting especially from the payroll.

Information.

It it will be adjusted to what three times in the second -- the third month and then every year in January and march.

They will be revisions.

Of the whole last year numbers.

So the BLS does say.

Fact that December 2011.

Numbers cannot be compared to the January 2012 numbers.

Because there's been an annual -- mile annual population survey changes.

-- back shrinkage in the workforce one point 177.

Million people.

That is the reason that the unemployment rate came down from 85283.

So people are saying what is certainly think it looks like Q cooking the books looks like you massaging the numbers to get to be politically correct unemployment -- -- down some to help President Obama what do you say.

I think that's hard to do.

-- basically this annual revision.

Of the annual population changes.

If it were possible they should be changed every month but it's not done every month because -- population grows every month.

And so it's -- and an annual basis and in March you will see another big adjustment in March.

From march to march of this past you know of this last year but having said that.

I do want to emphasize that the labor participation rate is very low but it's about 64%.

And to compare to other years it's usually have been -- like -- not 2000 don't want to 2009.

The labor participation rate with about sixty.

Six point five and other and at times it was much higher now also secondly the rebound.

From the recession of 2009 has been very slow -- if you took recession of 1980 want in nineteen.

In eighty eighty sit back here at 83 period.

The rebound soft five's -- great increases in GDP growth per quarter.

Of 79%.

We are not seeing that that we are seeing -- -- very low of one point seven.

Is it possible that in the next couple of months will see some revisions to these on the -- statistics.

Which will push the unemployment -- back up again is that possible or do you think is it likely.

You -- definitely see revisions.

And asked to what they are -- what the direction -- I think it's very hard but we are in such a deep job deficit situation right now.

That it will look to recover to the period of -- job growth well let's say you know in 2007.

We've lost seven million jobs since then at it would take us five years to recover to where we were in 2007.

Against even at the 250000.

Net new jobs rate every month.

Doesn't -- a terrible situation.

-- secretary we really appreciate you being with us today -- you know this subject inside and out and we have we appreciate your knowledge of this subject enormously thank you very much -- -- Got creation is still the problem oh yes that clearly thanks very much so we'll see against -- -- trust thank you thank you.

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