The November jobs report looked pretty good on the surface except for one number that popped off the page: 95 million.
That’s the number of Americans now counted as not in the labor force, a historic high that has confounded economists and policymakers. The total — 95.06 million to be more exact — has been rising consistently but surged by a gaudy 446,000 last month.
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Time For Truth: (CNBC) – What 'are so many of them doing?' 95 million not in US labor force
While the unemployment rate dropped and the economy added another 178,000 jobs, the number of Americans out of the labor force hit a record high last month.
According to the Labor Department, 95,055,000 Americans were out of workforce in November, meaning they were neither employed nor had made an effort to find work over the previous month.
Short-term gain for long-term pain?
That’s the view of economists at Goldman Sachs Group Inc., who argue that while some of President-elect Donald Trump’s proposals could boost U.S. economic growth in the near future, his other policies would offset those positive impacts over the long-run.
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Time For Truth: (Bloomberg) – Goldman Sees the Possibility of Stagflation Under Trump Presidency
Eurozone inflation remained weak in August, raising the prospect of further action from the European Central Bank to stimulate the bloc’s economy.
Inflation in the eurozone was 0.2%, unchanged from July and below analysts’ forecasts of a slight increase.
The ECB has introduced a number of stimulus measures, but the inflation rate still remains some way off the bank’s target of just below 2%.
Separate data showed the unemployment rate remained at 10.1% in July.
Analysts had been predicting a slight fall in the jobless rate.
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Time For Truth: (BBC News) – Eurozone inflation remains weak in August
Economic conditions, however, are very different today.
Before the Financial Crisis, home prices jumped due to to easy credit (no documentation, no down payment), record-high workforce numbers, a 4% unemployment rate, and rising wages.