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Back to News The Increasing Labour Force
15 April 2014

Kanaan Asset Managers
Kanaan Trust, IT676/97, the underlying entity is an authorized financial services provider, FSP 528.

The Increasing Labour Force

April 2014

In today's "Efficient chart" we look at the US labour market by looking at the US Unemployment Rate and US Labour Force Participation Rate over the past ten years. The US Labour Force Participation Rate is a measure of the 'active' portion of an economy; in other words, it refers to the number of people who are either employed or are actively looking for work. The US labour force has been on a declining trend over the past five years due to two forces; firstly declining economic fundamentals in the US and secondly, the retirement of the baby boom generation. However, the labour market has begun showing signs of improvement as the labour force participation rate increased to 63.2% in March from 62.8% in December 2013. Are workers finally returning to the job market because the economy is improving and confidence in job prospects is coming back? The gradual decrease in the unemployment rate, along with improving job market prospects, highlights a sustainable recovery in the employment market and supports a continued, gradual retraction in "stimulus" (QE tapering).

Andre Delport

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