Why Did the Labor Force Shrink So Much in August?

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


From the LA Times today:

The Labor Department said the jobless rate dropped over the month, to 8.1% from 8.3% in July, but that came as many people dropped out of the labor market. In a nation where the population is growing, a shrinking labor force suggests that many workers are giving up job searches because they are striking out in the employment market or don’t see good prospects.

That’s what you’d think, all right. And yet, although the number of people not in the labor force shot up by about half a million in August, the number of “discouraged workers” didn’t budge. So what caused the labor force shrinkage?

Beats me. But BLS data does suggest one thing: the shrinkage came almost entirely among those with a high school diploma or less. Among that group, the labor force shrank by 637,000. Among those with bachelor’s degrees, the labor force grew by 707,000. This is for workers 25 and older, so it has nothing to do with an influx of college students graduating this summer (and I’m using seasonally adjusted figures anyway).

I’m not sure what this means. Maybe it’s just noise. Or maybe I’m not reading the data carefully enough — an occupational hazard among us amateurs. Still, something seems a little off here. Why did so many high school grads (and dropouts) leave the labor force?

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate