Every month, the U.S. Bureau of Labor Statistics releases a jobs report reflecting the health of the U.S. economy.  The uptick in the national unemployment rate from 7.2 percent to 7.3 percent in October was widely noted.

One of the less-publicized figures in the employment report is the labor force participation rate, which measures the percentage of working-age Americans who are employed or actively looking for a job.  In October, this telling metric dropped to its weakest level in over 35 years – a dreadful 62.8 percent.  During a true economic recovery, the labor rate would be rising, not falling to a level last seen during Jimmy Carter’s second year in the White House.  Today, a record 91.5 million Americans are not included in the labor force.

Particularly troubling are the figures for minorities, women, and veterans.  The labor force participation rates for these groups are far lower than those of the overall population.  For African Americans, the labor force participation rate is 60.7 percent.  For women, the participation rate stands at 56.9 percent, a figure not seen in 24 years.  America’s veterans have a shockingly low labor participation rate of 51.3 percent.  It is simply unacceptable for the men and women who fought for our country to fall further behind in this economy. 

Fewer Opportunities

Understanding the labor force participation rate is important to understanding the unemployment rate.  The unemployment rate includes only those who are actively looking for work, so Americans who have stopped looking for a job are no longer counted.  Rather than signaling a healthy economy, recent drops in the unemployment rate are a worrisome reminder that the U.S. workforce is getting smaller.

The plunge in the labor force participation rate since President Obama took office illustrates the struggle to find employment in the Obama Economy, which has compelled more and more Americans to stop looking for a job and leave the workforce altogether.  Moreover, of the jobs that were created this year, part-time work has drastically exceeded full-time opportunities, frustrating millions of Americans whose only option is to work fewer hours and receive less pay.

Rising Doubts

Building confidence remains vital to efforts for an economic turnaround.  Recent surveys show that the optimism of small business owners is diminishing, and Americans are becoming increasingly skeptical of their chances to get ahead.  In a Gallup poll, only 52 percent believe that there is “plenty of opportunity” in America.  Fifteen years ago, that number was 81 percent.

Obamacare continues to be a major culprit behind the reluctance of job creators to reignite America’s economic engine and begin hiring again.  Anxiety over the law’s costly requirements and penalties quells innovation and job creation.  A growing number of businesses are reporting they will limit their number of full-time workers or drop health coverage in order to avoid the law’s mandates.  Until this disastrous law is replaced with market-driven and workable solutions, it will continue to be a burden on the millions of Americans looking for work.