Society

Report: 95 Million Americans Not In Workforce

| by Lauren Briggs

The number of Americans out of the labor force skyrocketed to more than 95 million, according to a November jobs report.

Though the economy added 178,000 jobs and the official unemployment rate dropped from 4.9 percent to 4.6 percent in November, the overall number of those out of the workforce grew by 446,000 to 95.06 million, reports CNBC.

With an estimated 10,000 Baby Boomers per day retiring from the workforce, employers struggling to find adequately qualified candidates for specialized positions, stay-at-home parents and others on disability and welfare benefits deciding not to return to the labor force, the issue could prove to be a substantial hindrance in growing the economy, said The Lindsey Group's chief market analyst Peter Boockvar.

"There's no question a lot of them are retirees," Boockvar told CNBC. "No one wants to say, 'I want to get fired and sit on my butt.' But when people do lose their jobs, they're not being incentivized enough to go back to work compared to the benefits they get by not being at work."

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Though the official unemployment rate of those who are considered to be a part of the civilian labor force is at a record low, a broader classification for unemployment that considers those who can only find part time work and those who would work if they had the opportunity estimates the number to be closer to 9.3 percent.

"I have a problem with people saying we're at full employment," said chief economist Dan North of Euler Hermes North America. "We have a record 95 million people sitting on the sidelines. To me, that's hardly full employment."

President-elect Donald Trump has also criticized the metrics for measuring unemployment, saying in August 2015 that "the White House is not truthful" when it comes to sharing economic data, according to PolitiFact.

"If you really look ... at the economy, it's been terrible," Trump told former Alaska Gov. Sarah Palin on her talk show. "We have 93 million people out of work. They look for jobs, they give up, and all of a sudden, statistically, they're considered employed."

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Sources: CNBC, PolitiFact / Photo Credit: Daniel Ramirez/Flickr

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