Many times america will hear the Unemployment Rate go from seven percent to 6. 7 and would view as the country going in the right direction in regard to job creation and Economic Growth. But would you agree that actually the reduction in the Unemployment Rate is not an indicator of strong job growth like many of americans may think . I will unpack things a little bit. The decline in the unemployment , is somewhere around two thirds due to the decline in labor force participation. And about one third to job creation. Speaking, the employment and population ratio has essentially stayed about the same since late 2009. So that is problematic. But we have two different forces working on employment population. One is the demographic changes that would tend to depress participation just as baby boomers like myself age, the population genuinely getting older. We are getting into times we are more heavily weighted to parts of the parts of the occupation that participate less. Compensate for thi
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