Workforce Participation Rate Hits New Low- Yet We Need Skilled Workers

This New Normal seems like a scene out of Alice in Wonderland.

This New Normal seems like a scene out of Alice in Wonderland:

The Workforce Participation Rate fell to an astonishing new low of 62.8%, and yet the Employment outlook for skilled workers in our precision machining shops is the most positive it has ever been, with 99% of respondents saying that the employment outlook will remain the same or increase over the next three months.

Alice would recognize this trend...

Alice would recognize this trend…

Americans not in the labor force exploded higher by 535,000 to a new all time high 91.8 million.

91.8 million Americans no longer in the workforce!

91.8 million Americans no longer in the workforce!

This is not due to just inevitable baby boomer retirements.

The estimates due to baby boomers range from 20% from the conservative Heritage Foundation to 25%  from the liberal Economic Policy Institute.

And yet Manufacturing Institute estimates 82% of U.S. Manufacturers are looking for skilled workers, confirming the strength of our previously mentioned 99% positive outlook for job prospects in the precision machining industry.

Why does this matter?

…we estimate that potential GDP is currently about 7 percent below the trajectory it appeared to be on prior to 2007.”-Reifschneider, Wascher and Wilcox IMF Paper

Graphs courtesy of Zero Hedge

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One Response to Workforce Participation Rate Hits New Low- Yet We Need Skilled Workers

  1. […] the Workforce Participation Rate at or near it historical low- “Now is the […]

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