Weak Employment in One Chart

Another weak jobs report with payrolls up only 80,000, unemployment stuck at 8.2 percent, and underemployment ticking up to 14.9 percent.

But the real news continues to be how far employment has fallen. As recently as 2006, more than 63 percent of adults had a job. Today, that figure is less than 59 percent:

With the exception of the past several years, you’ve got to go back almost three decades to find the last time that so few Americans were employed (as a share of the adult population).

The stunning decline in the employment-to-population ratio (epop to its friends) reflects two related factors. First, the unemployment rate has increased from less than 5 percent to more than 8 percent. That accounts for roughly half the fall in epop. The other half reflects lower labor force participation. Slightly more than 66 percent of adults were in the labor force back them, but now it’s less than 64 percent.

About Donald Marron 294 Articles

Donald Marron is an economist in the Washington, DC area. He currently speaks, writes, and consults about economic, budget, and financial issues.

From 2002 to early 2009, he served in various senior positions in the White House and Congress including: * Member of the President’s Council of Economic Advisers (CEA) * Acting Director of the Congressional Budget Office (CBO) * Executive Director of Congress’s Joint Economic Committee (JEC)

Before his government service, Donald had a varied career as a professor, consultant, and entrepreneur. In the mid-1990s, he taught economics and finance at the University of Chicago Graduate School of Business. He then spent about a year-and-a-half managing large antitrust cases (e.g., Pepsi vs. Coke) at Charles River Associates in Washington, DC. After that, he took the plunge into the world of new ventures, serving as Chief Financial Officer of a health care software start-up in Austin, TX. After that fascinating experience, he started his career in public service.

Donald received his Ph.D. in Economics from the Massachusetts Institute of Technology and his B.A. in Mathematics a couple miles down the road at Harvard.

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