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submitted 22 hours ago by MicroWave@lemmy.world to c/news@lemmy.world

June’s drop in the unemployment rate was because of an exodus of workers from the labor force.

The labor force participation rate, which measures the working-age population of those either employed or looking for a job, fell to 61.5%, the lowest since March 2021, according to the Bureau of Labor Statistics.

Excluding the Covid-era jobs market, it was the lowest participation rate since June 1976.

The labor force plummeted by 720,000 in June.

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[-] frustrated_phagocytosis@fedia.io 58 points 21 hours ago

We were told that kicking people off social programs would mean job seekers galore. Next month, surely, all the jobs will appear.

[-] Hapankaali@lemmy.world 32 points 20 hours ago

Interestingly, the more generous unemployment and social benefits are, the higher the employment rate typically is. The correlation is actually pretty strong. (Note: the table lists employment rate by the OECD measure, ages 15-64, whereas the BLS figure cited in the OP uses ages 16+ including retirees.)

While perhaps paradoxical at first glance, it makes sense if you think about it, since a more inclusive society also makes sure fewer people become detached from society, and more generous benefits also enable a more flexible labour market.

In this sense, the employment rate dropping at the same time the (already mediocre) safety net is being dismantled in the USA is unsurprising. It isn't because of an innate lack of "jobs," but because fewer people are in a position to be able or willing to work jobs.

[-] lemmyng@lemmy.world 6 points 20 hours ago

Yep, you give people enough of a reason to want to pay it forward, then they'll pay it forward.

[-] Buffalox@lemmy.world 13 points 20 hours ago

Exactly, the "kick them while they are down, will help them get up" mentality surprisingly doesn't work.

this post was submitted on 02 Jul 2026
214 points (100.0% liked)

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