The latest jobs report reveals a growing trend among unemployment stats: fewer people are working today since COVID.
The July jobs numbers show the unemployment rate went down 4.2% to 4.1% but that was because the Bureau of Labor of Statistics said the number of unemployed people dropped from 7.1 million to 6.9 million.
This is because hundreds of thousands of people stopped looking for work and left the labor force entirely. Labor force rate fell further to 61.4%, its lowest in more than 5 years, another indication that fewer Americans were working or looking for jobs.
The U-6, which is called the real unemployment numbers, shows more people have dropped out because they are discouraged or they’re not even motivated to look for work. That unemployment factor is around 8%.
This summer, a branch bank of the Federal Reserve reported that over 105 million Americans were not working, more than during COVID or the Great Recession
So why the drop off? There may be several reasons.
Some analysts point to a growing population of retirees, others believe its AI replacing workers and others say its more individuals taking advantage of government programs like disability and welfare.
Florida Daily Economic analyst Steve Beaman says these government programs have been out of control since covid.
“Is there anybody in the federal government who can tell us who is and who isn’t legit to be receiving these government programs, because right now nobody seems to have a clue,” Beaman said.
The GOP tax bill from 2025 is looking to clamp down on people taking advantage of welfare benefits or Medicaid. Inside the legislation, it would force those wanting to stay on the government dole to work more hours or go to school or be involved in some form of community engagement.
Originally the work requirements only applied to those up to 54, now that has increased to age 64.
