The latest unemployment drop was for the wrong reason
The nation’s unemployment rate sank in April to the lowest rate since December 1969, but the milestone comes with a big caveat: The decline stemmed from more people quitting their search for work.
The jobless rate slipped to 3.6% last month from 3.8% in March, continuing a long downward arc from a 27-year high of 10% in 2009. Yet that doesn’t mean there aren’t some potential trouble spots.
Take the size of the labor force. It contracted in April by nearly half a million people and fell for the fourth straight month.
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What explains the decline?
The most likely cause is rapid retirements of baby boomers, whose ranks are dwindling faster than the number of younger people entering the labor force. Slower economic growth earlier in the year may have also discouraged some people from looking for jobs.
https://www.msn.com/en-us/money/markets/the-latest-unemployment-drop-was-for-the-wrong-reason/ar-AAARiNK?li=BBnbfcN
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