So how could the unemployment rate decline as the number of employed
Americans tumbled? Simple: the labor force plunged, with the BLS
reporting that the total labor force declined by 429,000 Americans in
the month of May. This was the result of a whopping 608,000
American exiting, as the number of people not in the labor force soared
to 94.983 million, up from 94.375 million in April.
As a result, the labor participation rate tumbled once again, sliding to 62.7%, the lowest print since 2016.
In sum, between the huge payrolls miss and downward revisions, the disappointing wage growth, and the droves of people leaving the labor force, this may have been one of the ugliest jobs reports in recent years.
As a result, the labor participation rate tumbled once again, sliding to 62.7%, the lowest print since 2016.
In sum, between the huge payrolls miss and downward revisions, the disappointing wage growth, and the droves of people leaving the labor force, this may have been one of the ugliest jobs reports in recent years.
