The U.S. unemployment rate fell to 8.1 per cent in April, but investors are quick to point out that much of this decline could be generated by a drop in labour force participation, not true jobs growth.
In fact, labour force participation hit 63.6 per cent in April, down from 63.8 per cent in March. That’s the lowest rate since 1981.
From expert Reuters chartist Scott Barber, this is what’s happened to labour force participation over the years:
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