The unemployment rate dropped slightly last month for one major reason… many people have simply given up looking for a job. The number of workers that are actively looking for a full-time job and can’t find one is over 6 million people.
As someone that doesn’t have the luxury of not working, I was wondering exactly what those people that have dropped out are doing. Turns out the younger ones are choosing to live at home with their parents for much longer and staying in school much longer. A lot of those students aren’t working a job while they are in school, which means their student loans are going to be hell to pay off once they do get out. And that’s assuming they can even find a job once they’re out. Yes, getting a good education will look nice on their resume, and their job experience will grow as they get out into the workforce, but student loans are forever.
The number of women that are choosing to work has dropped to the lowest level in 20 years. More women are choosing to stay home and take care of the kids.
Once those discouraged workers go back to looking for work again the unemployment number will rise.