The Beginning Of The End
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There Are 100 Million Working Age Americans That Do Not Have Jobs ***UPDATED***

The unemployment crisis in America is much worse than you are being told.  Did you know that there are 100 million working age Americans that do not get up in the morning and go to work?  No wonder why it seems like there are so many people that do not have jobs!  According to the federal government, there are 12.6 million working age Americans that are considered to be “officially” unemployed, but there are another 87.8 million working age Americans that are not working either.  The federal government considers those Americans to be “not in the labor force” so they are not included in the unemployment rate.  In fact, this is one of the key ways that the government manipulates the unemployment numbers.  The Obama administration would have us believe that the unemployment rate is going down and that that since the start of the last recession about as many Americans have left the labor force as we saw during the entire decades of the 1980s and 1990s combined.  Of course that is a bunch of nonsense, but that is what the Obama administration would have us believe.  The truth is that the percentage of working age Americans that are employed is just about the same right now as it was two years ago.  It was incredibly difficult to get a job back then and it is incredibly difficult to get a job right now.  So don’t believe the hype that things are getting much better.  If you still do have a good job, you might want to hold on to it tightly, because there is not much hope that things are going to improve significantly any time soon.

The first chart that I have posted below shows the total number of “officially” unemployed workers in America.  According to the Federal Reserve, that number is currently 12,673,000.  This chart makes it look like the employment picture in America is getting significantly better….

But if you dig deeper into the numbers you quickly see that this is not true.  A lot of those workers that were formerly classified as “unemployed” have now been moved into the “not in labor force” category.  Since the start of the last recession, the number of Americans not in the labor force has risen by more than 8 million according to the Obama administration.  The total number of working age Americans not in the labor force now stands at 87,897,000….

So when you add 12,673,000 and 87,897,000, you get a total of 100,570,000 working age Americans that do not have jobs.

Yes, there are certainly millions upon millions of working age Americans that do not have jobs and that do not want jobs.

But you have to be delusional to believe that there are nearly 88 million working age Americans that do not have jobs and that do not want jobs.

The Obama administration tells us that the labor force participation rate is now the lowest it has been since 1984.  But back then, a very large percentage of women were staying home and raising families.  The percentage of stay at home mothers has declined steadily since then.

So the truth is that the employment statistics that we are being fed are not portraying an accurate picture of what is really going on.

As a CNN article recently explained, there are millions of Americans that say that they would like to have a job even though they have not been “actively” looking for one in the past four weeks.  If those people were included in the unemployment rate, it would immediately shoot up to around 11 percent….

About six million people claim they want a job, even though they haven’t looked for one in the last four weeks. If they were to all start applying for work again, the unemployment rate would suddenly shoot up above 11%.

If you want a much more accurate picture of what is really happening to the employment situation in America, the key is to look at the employment to population ratio.  As I have written about previously, the percentage of working age Americans that have jobs is not increasing.

Let’s take a look at the employment to population ratio for the last six years for the month of March….

March 2007: 63.3%

March 2008: 62.7%

March 2009: 59.9%

March 2010: 58.5%

March 2011: 58.5%

March 2012: 58.5%

The percentage of the working age population that had jobs fell rapidly during the recession and it has stayed very low since then.

When Barack Obama tells you that “America is going back to work” he is lying to you.

The cold, hard reality of the matter is that there are millions of hard working Americans that have been sitting at home for years hoping that a new job will come along.

Back in 2007, approximately 10 percent of all unemployed Americans had been out of work for one year or longer.

Today, that figure is above 30 percent.

The average duration of unemployment in the United States today is about three times as long as it was back in the year 2000.

And according to a recent Wall Street Journal article, the number of announced job cuts is actually rising again….

Also, announced jobs cuts rose 7.1% in April, according to Challenger, Gray & Christmas, to 40,599 — and up 11.2% from last April — another bit of evidence that the jobs market isn’t doing well.

Economic conditions in the United States have been steadily getting worse for quite a while, but that is not the only reason for our employment problems.

There are two other trends that I want to briefly mention.

1) A lot of jobs that used to be very labor intensive are now being replaced by technology.  Thanks to robotics, automation and computers, a lot of big companies simply do not need as many workers these days.  Those are jobs that are never going to come back.

2) As labor has become a global commodity, millions upon millions of U.S. jobs have been sent overseas.  Today, you are not just competing for a job with your neighbors.  You are also competing with workers on the other side of the globe.  Unfortunately, it is legal to pay slave labor wages in many of those countries.  By sending our jobs out of the country, big corporations can also avoid a whole host of rules, regulations, taxes and benefit payments that they would be facing if they hired American workers.

So U.S. workers are at a massive competitive disadvantage.  Why should a big corporation pay 10 or 20 times more for an American worker when they can pad their profits by exploiting cheap foreign labor?

The sad truth is that the value that the marketplace puts on the labor of the average American worker is continually decreasing.

This is making it much more difficult to find a job and it is keeping wages down.

In the old days, pretty much any man that was a hard worker and that really wanted a good job could go out and get one.

But now all of that has changed.  Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

And sadly, the vast majority of the jobs that are being lost are good jobs.  As I wrote about the other day, 95 percent of the jobs lost during the recession were middle class jobs.

So how are middle class families making it these days?

Many of them are going into tremendous amounts of debt.  As a recent CNN article detailed, the average debt load being carried by those of us in the bottom 95 percent of all income earners has risen dramatically over the past several decades….

In 1983, the bottom 95% had 62 cents of debt for every dollar they earned, according to research by two International Monetary Fund economists. But by 2007, the ratio had soared to $1.48 of debt for every $1 in earnings.

Unfortunately, many American families are absolutely maxed out at this point.  According to one recent survey, approximately one-third of all Americans are currently paying their bills late.

If your goal is to live a middle class lifestyle, you need to realize that the entire way that the game is being played is changing.

In the old days, you could start out with a company as a young person and stay with that company until you retired.  If you worked hard and you were loyal, there was a really good chance that the company would recognize that and be loyal to you too.

These days, most companies are absolutely heartless when it comes to their workers.  The good job that you have today could be gone tomorrow.  Workers are increasingly being viewed as “liabilities”, and there is a good chance that the moment you become “expendable” to your company you will be kicked out on the street.

That is one reason why I am encouraging people to consider starting their own businesses.  If you work for someone else, your security can be taken away from you at any moment.  But if you work for yourself, you aren’t going to get fired.

Unfortunately, tough economic times are coming and things are not going to be easy no matter what road you take.  It will be imperative to work harder than ever, to stay flexible, and to never, ever give up.


Since the monthly jobs numbers were released on Friday I thought I would update this article to reflect the latest figures.

The federal government has announced that the unemployment rate has declined to 8.1 percent.

That certainly sounds like good news.

But knowing better, I immediately went and checked how the employment to population ratio had changed.

Well, it turns out that the employment to population ratio has fallen once again.

That means that a smaller percentage of working age Americans had jobs in April than in March.

The following are the figures for the past three months….

February 2012: 58.6%

March 2012: 58.5%

April 2012: 58.4%

If the percentage of people that have jobs is going down, then how can they claim that things are getting better?

The following are the two Federal Reserve charts posted above after they have been updated with the new numbers.  These charts are very revealing.

1) There are now 12,500,000 workers that are “officially” considered to be unemployed….

2) There are now 88,419,000 Americans that are considered to be “not in the labor force”.  Please note that this number rose by 522,000 in just a single month!….

Okay, so now let’s do the same math that we did before.

12,500,000 unemployed workers plus 88,419,000 Americans that are “not in the labor force” equals 100,919,000 working age Americans that do not have jobs.

That number just continues to climb at a very rapid pace.

When is the mainstream media going to start telling us the truth?

  • Gary2

    He and Saez, a professor of economics at the University of California-Berkeley, agreed in a November 2011 paper that the rich do behave differently when their taxes are raised. They pursue financial strategies to reduce their taxable incomes and bargain for higher compensation, instead of cutting back on how much they work and save or becoming less entrepreneurial.

    Peter Diamond, who won the 2010 Nobel Prize in economics, also sees little evidence that raising rates on the top 1 percent of income earners — households making about $350,000 or more a year in 2010 — would restrict growth.
    ‘Overwhelming Likelihood’

    “The overwhelming likelihood is that the revenue- maximizing federal tax rate is somewhere in the 50 to 70 percent range,” said Diamond, a professor at the Massachusetts Institute of Technology in Cambridge. “If you are reluctant to overshoot, well okay, you can only go up to 50 percent, which I like to refer to as the Reagan tax rate.”

    • GaryToo

      NO NEED TO PREP PEOPLE we are goinmg to avoid the economic collapse by taxing the rich hard, its proven it would work as above, we will tax over 15 trillion out of the like of mcKinley to get us back into surplus. Rich people businesses are not dying like flies because its too hard to do business here, they can afford MORE, WE can also control countries like bahamas and switzerland to stop offshore accounts, we can control other countries alolwing them to operate there to avoid the higher taxes they can afford. PIIGS can fly and dont bother prepping just sink a bilionares yacht to stop them going OS, becoz im sure OUR govt will see this sense and change course.

      • Gary2

        I agree we need to prep. I especially like the mantra of hoping for the best but preparing for the worst.

        I am simply in a nice way saying we can tax the rich a lot more than we currently do and it will have little to no negative impact as far as stunting economic growth.

        • GaryToo

          sure, tho “common dreams” kind of says it all preaching to the converted communists, lets go 99.9% tax. we would still need to sink their yachts to to stop them shifting operations OS or bring OS to US, Damn these magnetic mines not sticking to barnacles, fibreglass or aluminium hulls. pronounce that Al-yoo-min-i-um, 5 syllables. Not Al-oo-minum” Halfwitted republicans you are excused, looking at you George W “nucular” Bush.

    • McKinley Morganfield

      You repeatedly fail to understand the magnitude of the problem. I’m going to give you the benefit of doubt and allow that you have an IQ on the right side of the bell curve. This means I will count you as a dogma driven political partisan who has never taken the time to step back and get a reality check. (BTW you are not alone in this as there are billions on the left and right who do the same.)

      This, in a humorous manner, begins to explain the problem:

      There is no way back Gary2. Austerity, tax the rich hard, blah, blah, foam at the mouth, scream, and bang your head against the wall; but there is no way back. There is no way back to fairy tale utopia of FDR or Reagan. There is only a way forward that involves a lot of pain and years of struggle, hard work, and frugality. Otherwise there is darkness, despair, and totalitarianism.

  • robert lazo

    All you have to do is watch “How its made” TV show. Its crazy to see the automation. McDonalds now by me has auto soda and fry machine. I remember as a kid both of those took 1 person to run each.

    • Gary2

      We have almost totally automated Burger Kings coming. Only require a human order taker/filler. I used to manage a burger king way back when (not the good job I lost) and this is coming as it was hard to get workers at the low wages they paid.

  • Washington

    Ron Paul WINNING State Delegate Majorities/Massive Turnout at Rallies

  • Timo45

    Stack silver,gold,food what ever u need to do because after seeing these over whelming numbers. I know what direction we are headed to. Those who wake up do what they have to do they are the one’s that will survive this river of hard times that’s coming our way. You can’t expect nothing but lies to come from our political leaders. Try our best to wake people up but if they don’t wake up its their own falt. This is sad to know over a 100 million people are out of work, its sad that most of the ones that have jobs are low paying jobs and its very sad to know we have lazy good for nothing politicians and central banks living like kings off the backs of hard working people. This is modern day slavery, we not getting whipped by a rope we are getting financially whipped.

  • Chestertonian

    We think too much in terms of getting a job from some corporate or government employer. I live in an area characterized by small cities (6000-35,000 population) interspersed with small farms and ranches. Many people I know work a day job and also raise chickens, grow a garden, have a few milk cows, etc. Almost everyone I know, teenagers included, in this semi-rural, heartland-type area is employed. Some (like myself) are over-employed, that is, busier than they really want to be. The common denominator is: a mentality that doesn’t depend on large, anonymous organizations but on vigorous, hard-working self-reliance, a willingness to move around and sometimes work out of state for months at a time (this applies to a minority of those I know), skill at some manual trades, and an intact husband-and-wife family with children, who work together and do things frugally. I’m not saying things are easy; they’re not. But those people I know, and I know hundreds nearby like I’m describing, are making ends meet. Not everything is done according to the book, i.e. conforming to every nit-picking government regulation. Hard work, getting hands dirty, and faith in God are helping many I know survive pretty well. Think outside the modern, corporate-dominated, media-framed box!

  • Steve

    Job destruction is permanent and escalating. Automation is here to stay. Nothing can stop it. Nothing can stop it.

  • http://n/a BikerDad

    ***************! Stupid numbers. The spin in this article is as bad as gov’t statistics, only instead of polyannish puppies and unicorns, it’s apocalyptic, consipiratorial chicken little.

    Mind you, I’m not saying that the “official” numbers are correct, they’re lower than reality, scandalously so.

    “Not in Labor Force” has been climbing almost every year since 1947, and likely before, but the data isn’t handy so I won’t state it affirmatively. Why? Mostly because our population is climbing. What’s the PERCENTAGE of the working age population that is “not in labor force”? That’s a solid number.

    So what’s the definition of “labor force”? Well, it starts at 16 years old. So, for your panic purposes, let’s count the high school students who don’t have jobs. Ends at 65, so the fellow who takes retirement at 62, “not in labor force”… ahhh, never mind….

    Folks, go check out the info yourselves:
    Labor Force participation by % – – Pick total labor force, run it, reset the years, show the graph.

    Again, I’m not saying that things are good, far from it. However, the % of the labor force that is working now is higher than it was when Jimmy Carter took office, OR ANYTIME PRIOR TO THAT as far back (1948) as the data goes.

    Perhaps this will illustrate the absurdity of these raw number panics:

    “**************!!! Unemployment is out of control. There are more Americans unemployed now than during the Great Depression!!!!!!” (yeah, well, the size of the labor force now is greater than the total population then…)

  • Evie

    I heard on tv the young are not looking for jobs. Must be the quality.

  • Steve

    Job destruction is caused by the 3rd Industrial Revolution (1970 to date). This destruction is PERMANENT and ESCALATING. The private sector is on a juggernaut to eliminate all wages, salaries, commissions and bonuses – along with all human workers. Governments are doing nothing to help the unemployed. Almost all of the printed money goes to the upper class. The middle and lower classes must unite and form THEIR OWN ECONOMY based on THEIR OWN BUSINESSES. They can be called Democratic Work Places and they will hire ANYONE who needs a job and can be trained. They can pay salaries to the workers not in dollars but in gold and silver. Impossible to do you say? Probably. But there is no alternative. The jobless must create their OWN JOBS or face ruin.

  • SCyankee

    In my observation, since the late 90s and the burst I’ve observed a (not at all subtle) transition of formerly successful but downsized “over 40s” simply hanging out their own shingles and becoming sole-proprietor “consultants” instead of pursing jobs we know our age precludes us from ever getting.

    I’m a graphic and environmental designer who has taken a few long-term full-time gigs since then, but have otherwise been sole-proprietor of a one-man creative services shop with gangbuster business for many of those years. Worked my usual 60-80 hour weeks but actually got paid for them. Things were very good until June 2007 when my business simply stopped (and/or it became nearly impossible to get paid by clients who have also, one by one, closed, been implicated in various scams and scandals and/or simply disappeared “into the woods”). I now scrape by on occasional and sporadic little projects and teaching occasional art and painting classes. We seem to somehow keep the power and utilities on and can occasionally add meat to our staples of rice, beans and potatoes but we’re living every month on “a wing and a prayer”and have been now for YEARS! But I am statistically “employed”.

    Never drawn a day of unemployment so never counted as unemployed in that way, and I do still have some business but not NEARLY enough. There are MILLIONS of us in this same position. To say we’re employed is as dubious as saying the many “former professionals” who got menial jobs at the CVS or Walmart but are getting 8 hrs a week shifts are also employed. I’m seeing LOTS of this happening as well.

    I know I’m not an unusual case. There are MILLIONS of we middle-age “consultants” (or freelancers) out here. I believe there are far more of us than are being “measured” as employed but are making little or no money (often having to accept HUGE fee discounts and concessions for the tid-bits of work we can get and get paid for).

    I know I feel entirely invisible.

  • RestoreUSmfg

    We need whoever wins the next election to Start Protecting American Jobs and do whatever it takes to bring back the jobs they let go. They’ve got to give us somebody who will stand up for the American people.

    We need to bring manufacturing back to the United States of America and both parties are ignoring tariffs as a way to level the playing field, raise money and bring jobs back home. Let’s guess why. Oh that’s right, tariff is a dirty word. Hum, maybe it’s that our so called leaders (political leaders) are beholden to the same people who are exporting our jobs.

    I guess we should keep letting Corp Boards, Wall Street and CEOs promote sending US jobs to countries where they work for slave wages, no benefits, no OSHA safety standards or no real environment regulations. How’s that been working for us?

    The so called “Global Market Place” is not a level playing field. Companies may have made higher profits by “out sourcing”, but they’ve been putting middle class Americans who are a good part of the world’s customer base out of work. I’m not a lefty or member of any union. I run a business that employs over 20 people and produces products that are purchased by customers that do manufacturing and packaging. I’m just an average Joe, but I’ve been saying this for more than 10 years now. If I can see it, so can our so called leaders (political leaders) who are beholden to the same people who are exporting our jobs.

    We need to add tariffs that are proportionate to the inequities in wages and regulations in the country where the goods were produced and or where we’re importing them from. We could then use the money raised by these tariffs to help companies build state of the art manufacturing plants here in the USA, which would create more jobs here at home for US citizens, which would then in turn increase our income tax revenue.

    Bringing manufacturing back to the US not only gives jobs to the US citizens who would be working in those manufacturing facilities, but to the people that would be working in the businesses that would spring up all around them. This should also include the safe harvesting, production and distribution of our own natural energy here in the USA, rather than paying for fuel from countries where they hate us. Let’s keep that money and those jobs here in the US.

    We may have to pay a bit more for products made here in the USA by US citizens, but at least we’ll still have jobs and a future for our children.

    The bottom line is that “Our Government” has to protect American industry and the jobs that those industries provide. If they do that, the rest will take care of itself.

  • http://redridersupreme@yahoo Fly Rod

    @ gary 2 As for the wealthy paying the same in taxes you are very wrong I Went from working a for others to owning my own construction company and I also owned my own trucking company. When I worked as an employ I did pay out almost 27% which came to a total of almost $9500.00 then as a company I was able to claim so many deductions I only paid around 4.5% per dollar earned. And made a lot more. Now all the work I use have is now gone the fuel cost more than the freight will pay to a small time business and no housing means no work so I sent fifteen men looking for work elsewhere. I had hoped that I would be able to keep paying $5 per hour more to each of my employees as I was doing. I was also hoping to pick up more freight contracts but there is nothing out there for a start up company to make a penny on any more. I also watched my brother lose a million dollar construction company. Now I am a stay at home Dad and my wife works part time.

  • deanrd

    What are Republicans qualifed to do? They think education is for snobs.

  • Bp. David

    11% unemployment rate is incorrect. 83 million out of work divided by 238 million total working age = 34.8%. And it’s up to 50% among blacks. And you wonder why there is unrest? Pre-Hitler Germany was not this bad!

  • Susan Axtell

    The total population of our country is approx. 315 million. How is it possible that fully one third of that number is out of work? That’s preposterous.

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