CHART OF THE WEEK

Some argue the decrease in the overall labor force participation rate (LFPR) is attributable to Baby Boomers retiring. However, as the chart shows, the LFPR for 25 to 64 year olds is falling while the LFPR of those 65 years and older is rising. This implies the probability of a 25 to 64 year old being in the labor force has shrunk while the probability of someone 65 years and older being in the labor force has risen.

Using the December 2007 LFPRs as a benchmark, JEC estimates that had the labor market recovered to its pre-recession level, then 3.7 million more 25 to 64 year olds would be in the labor force, while 1.6 million more individuals 65 years and older should have retired by now. Taken together, we estimate that at least 5.3 million people ages 25 and older have been adversely affected by this lackluster recovery.

LAST WEEK

News & Commentary Weekly Highlights:

Fortune: Unemployment Rate Rises in Disappointing September Jobs Report (Friday)
Bloomberg: The Job Market and Its Discontents (Friday)
Market Watch: ‘Fiduciary rule’ may create a $10 trillion exchange-traded behemoth by 2020 (Thursday)
Wall Street Journal: ObamaCare’s Meltdown Has Arrived (Wednesday)
Daily Signal: Obama Administration Is Willing to Break the Law to Save Obamacare (Tuesday)

Top Economic Indicator Highlights:

Employment Situation (September)

Unemployment rate (seasonally adjusted):
- September: 5.0%; August: 4.9%; July: 4.9%;
Nonfarm jobs (seasonally adjusted):
- September: 156,000; August: 167,000; July: 252,000
Noteworthy: The largest job gains occurred in professional and business services (+67,000) and administrative support and services (+35,000), and healthcare (+33,000). The only sector that lost jobs was government (-11,000).