Two Key Reasons Why The US Labor Force Is Shrinking

Peter Cardillo, chief market economist at Rockwell Global Capital, weighs in on the September jobs report and gives two reasons why the labor force participation rate continues to decline. The Labor Department reported on Tuesday U.S. employers added 148,000 jobs in September, well below economists’ expectations for 180,000, according to Reuters estimates. The unemployment rate unexpectedly ticked down to 7.2 percent, from 7.3 percent in August.However, the Labor Department's report for August was revised up from 169,000 jobs to 193,000 for that month, while total non-farm payroll employment for July was revised lower to 89,000 from 104,000. The labor force participation rate last month fell to 63.2 percent, the lowest level since 1978.Peter Cardillo, chief market economist at Rockwell Global Capital, weighs in on the September jobs report and gives two reasons why the labor force participation rate continues to decline. The Labor Department reported on Tuesday U.S. employer’s added 148,000 jobs in September, well below economists’ expectations for 180,000, according to Reuters estimates. The unemployment rate unexpectedly ticked down to 7.2 percent, from 7.3 percent in August.However, the Labor Department's report for August was revised up from 169,000 jobs to 193,000 for that month, while total non-farm payroll employment for July was revised lower to 89,000 from 104,000. The labor force participation rate last month fell to 63.2 percent, the lowest level since 1978.