The April unemployment number may stand at 5.4 percent – a figure touted by some economists as proof of a rebounding job market – but critics say the seven-year low is due to one factor, and one factor alone: More Americans than ever have left the work force.
The Associated Press blares the numbers in a positive light, with a headline: "U.S. Employers Add Solid 223,000 jobs; Rate 5.4 PCT., 7-Year Low."
And the intro to the story read: "W.S. employers added 223,000 jobs in April, a solid gain that suggests that the nex economy may be recovering after stumbling at the start of the year. The job growth helped lower the unemployment rate to 5.4 percent from 5.5 percent in March. ... That is the lowest rate since May 2008."
But Zero Hedge, a widely read financial analysis blog, added a somber note to the news.
"The number of Americans not in the labor force rose once again, this time to 93,194K from 93,175K, with the result being a participation rate of 69.45 or just above the lowest percentage since 1977," the blog reported.
And the effect?
Americans' rapid exit from the job search market will only speed up the "deterioration of the broader economy," Zero Hedge reported.
For those working, the trickle-down effect means: stagnating wages.
"There will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time," the blog predicted.