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Labor Participation Rate Falls to 63.5%, 30-Year Low

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  • Description

    FBN’s Ray Hennessey breaks down the latest report from the Labor Department.

  • Duration 5:51
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Good morning 96000.

Jobs were added in the economy last month the -- well below what economists expected are on Fox Business reporter -- didn't live at the Labor Department now with more on this to -- When he report rich.

And Robert if you look at private sector job growth only a 103000 about half -- what the ADP reported showed yesterday.

Unemployment rate falls to eight point 1% but that's because somebody folks have left the labor force and you go even further back.

The Department of Labor featured some revisions in this report for June and July showing the economy created 41.

Fewer thousand jobs than had originally -- stated by the Department of Labor the last couple of months the labor force.

Falls by 368000.

The reason that the unemployment rate mostly.

Fell four last month so that's not good news participation rate.

Falls two tenths of -- percent to 63 point 5% the lowest in a generation and the employment population ratio at 58 point 3% that falling as well.

-- point 1% just over some of the sectors here manufacturing falling by 151000 durable goods account for 171000 that.

Government sheds 7000 jobs the Fed.

Federal government adding 3000 state governments losing 6000 -- job growth in leisure and hospitality 34000.

Of that 28000.

Is for food and beverage service.

Professional and business services falling 28000.

It typically in the summer you'll see an increase in temporary help services.

Or that's an indication that perhaps more people becoming in as full time workers not the case here.

That sector temporary help services falling nearly 5000 jobs health -- adding 171000.

Finance and industry 111000.

And construction 1000 just one more point -- Robert sometimes.

We look at hourly earnings and the workweek seal -- needy people are working longer hours -- -- beatification will start to bring some more people on.

Not the case here hourly earnings falling one cent and the average work week remains unchanged at 34 point four hours.

-- -- All right rich thanks so much -- for more.

Are reacting on the August -- support let's bring in ray Hennessey director of business use here -- thought fox business and and -- it's hard to characterize it.

Any other way then disappointing and an almost the opposite of what we got last month it disappoints and the prior two months revised lower whereas last summer's are visions.

Higher what's your take away.

Well I you know what I'm afraid of Robert -- you actually should be seeing these kind of numbers.

That you while you're still in a recession right or or toward the end of a recession or maybe when you just came out we -- actually get out of a recession for awhile so you should see.

More job acceleration and we're seeing and what I'm afraid of is that.

But for whatever reason call it government policy or the nature of the past recession nor or what or what have you.

-- -- nature of the American workforce is changing.

We should not be a country at this part of the economic cycle.

We're so many people are leaving the workforce the worst number -- that that you know we've been reporting is that 63 and a half percent labor force participation rate that means that.

Well over a third of the country that could be working.

Isn't working -- some of them are working because they're out there looking for a job.

But fewer of that percentage are working because they can't find a job more of that percentage are working because they're not looking for -- job.

And this is a country that's built on free enterprise and you can't have a country built on free enterprise where the people who came up -- that system choose not to work.

And I say look I I feel bad I'm sure there's discouraged but you just -- -- very very discourage work -- And and that speaks you know forget have put economic policy aside just the fabric of the nation changes when you get to that point so it's it's very troubling.

And you kinda worry about whether or not that create systemic problems in labour force that we're gonna have big deal with for years and years to -- it's just a very abysmal depressing report.

-- add to your point it takes us back to you know that the fall 1981 the last time we saw 63 and a half percent participation rate and on the other hand investors watching the market we saw of the futures drop they jump now they're pretty much sitting right where they work.

The limitations that -- Ben comes in here.

Right well you you know you know why people are buying in the buying in because now they feel like Ben Bernanke has no choice but to go with QE3 -- we've got to print more money.

But Robert.

Think of the implication that sure there's a short term trade that says that that's positive.

But we should not be in the third round of quantity of easing we're we're looking to Ben Bernanke did to bail us -- -- think something has got even Bernanke.

Went -- you know in his speech in Jackson Hole was saying.

There's only so much I can do we need some fiscal problem fiscal policy changes that they need to come through and we're not seeing that we're not seeing plans going into effect we're not seeing any -- We've had stimulus after stimulus after stimulus and traders -- that.

But you know what stimulus hasn't worked it's not working we need sort of a wake up a couple of new ideas here because the old ideas really from from all across the political spectrum have -- work.

Because we should not be seeing numbers like this and you shouldn't see the changes in the populist and attitude be like race where we are -- economic cycle.

Enrichment sitting at you know the average hourly wages falling why -- do you have -- inflation out there and savers of course being penalized.

With lower rates it looks like that will continue the dollar falling as well.

What's it gonna do for consumer spending and yeah.

Will then it's a very good point as you -- in a situation now where people are making it into a few people have a job.

Are making what they've made before but everything that they're buying the prices are going up so.

Even the people have a job can't feel better off because they are you know their dollar is going -- the things that they need to buy so.

That's speaks this whole debate about are you better off than you were four years ago for most people -- -- have a job or not the answer based on these numbers is probably now.

And if you look at the markets a -- individuals we know have been moving away from stocks even has -- been rising and that's.

The way -- -- array thanks so much for joining us ray Hennessey the director business -- at Fox Business now if you're just.

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