Statistics Suggest Growth in Labor Force Participation

The number of Americans in the labor force improved slightly in July, says the DOL’s Bureau of Labor Statistics (BLS).

The bureau reported in June that about 94.5 million people were not in the labor force. In July, the number dropped to 94.3 million. That means about 200,000 more Americans participated in the workforce, about a tenth of a percentage point increase to 62.8 percent participation.

The labor force participation rate is the percentage of people in the civilian, non-institutionalized population, age 16 or older, who are working or seeking work. In September 2015, the rate fell to its lowest point since 1977 when it dipped to 62.4 percent. The best it’s been during the current administration is 65.8 percent in February 2009.

As noted by the Congressional Budget Office, the labor force participation rate reflects people’s decisions about the attractiveness of working or looking for work compared with alternatives such as attending school, caring for family, or retiring.

In the report, BLS said the economy added 255,000 jobs in July, a better showing than analysts expected. That 255,000 compares with a revised 292,000 in June.

The July unemployment rate held steady at 4.9 percent, as the number of unemployed persons dropped 13,000 to about 7.8 million. At the same time, the number of employed persons increased by 420,000 to 151.5 million.   Source: CNSNews