Employment Mass Extinction Events

Those not in the labor force have grown nearly 3.2 million over the past year, with nearly 1 million in just the past month.


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There was a major long-term trend shift starting in 2000. The Fed didn't like the old normal in red so it offered us up a housing bubble and in its aftermath a new normal in blue. It's a bit hard to tell the two normals apart in the chart. Well, you kind of can. The new normal is a bit steeper. It's probably trying to make up for lost can kicking ground. Oh the futility! Unintended consequences for the win!


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Note that the Great Recession also created a major long-term trend shift in those dropping out of the labor force permanently more than likely. One wonders if there will be more employment mass extinction events in the not too distant future. One especially wonders that if all this current can kicking is no more permanent than the last time.

Source Data:
St. Louis Fed: Not in Labor Force per Capita
St. Louis Fed: Real Social Security Benefits per Capita