Drop in labor participation rate is distress signal | Burlington Free Press | burlingtonfreepress.com

Drop in labor participation rate is distress signal | Burlington Free Press | burlingtonfreepress.com

Friday's jobs report generated much distress in financial markets not only because employers added just 88,000 jobs in March — less than half the number expected — but also because the unemployment rate fell for the wrong reason.
The jobless rate declined to 7.6% from 7.7% largely because about 500,000 Americans dropped out of the labor force — meaning they stopped working or looking for work. The labor force participation rate, or the share of Americans ages 16 and over in the labor force, fell from 63.5% to 63.3%, a 34-year low.