The number of Americans not in the labor force has grown 18% since the day President Obama took office.
On Friday, the final jobs report of Obama’s presidency was released and it shows a record 95,102,000 Americans are not in the labor force. CNSNews.com reports that number is up 14,573,000 from when he took office.
According to CNSnews.com, money used from the payroll taxes of American workers goes to programs that help support the unemployed. If this is the case, the more Americans in the labor force, the better the economy.
In a report done by U.S. News, chief economist at Glassdoor, Andrew Chamberlain, explained how the American labor force can impact an economy.
“In the long-term, the labor force participation rate affects what fraction of Americans are doing productive work, and that affects growth prospects in the long term,” Chamberlain said. “And economic growth ultimately determines our standard of living, which influences health, education, arts, and all the other things that we like.”
It’s important that labor force numbers grow steadily with the population, in order for the economy to grow at a steady pace as well, Chamberlain indicates.
The Labor Department’s Bureau of Labor Statistics reports the December unemployment rate was 4.7 percent, which is down from the Obama Administration high of 10 percent. This is the number President Obama likes to focus on when talking about the state of the economy economy.
“I took an economy that was about to go into a Great Depression,” he told a Chicago reporter Thursday. “And we’ve now had a little over six years of straight economic job growth, an unemployment rate that’s down below 5 percent, and incomes that have gone up and poverty that has gone down.”
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