US Unemployment Report: Every Silver Lining Has a Cloud

The Bureau of Labor Statistics monthly employment report revealed a significant drop in the unemployment rate from 6.7% in April to 6.3% in May. However, the lower drop in unemployment was accompanied by a large drop in the labor force participation rate (LFPR).

“The employment report issued (Friday) is good and welcome news,” said Bob Funk, CEO of Express Employment Professionals and a former Chairman of the Kansas City Federal Reserve. “But every silver lining has a cloud and the number of people who have quit looking for work is a real cloud in today’s economy.”

To learn more about the LFPR and its effect on the economy, read “The Great Shift,” a detailed explanation issued in late 2013 discussing the impact of a steady drop in the LFPR on America’s employment trends.

How has the labor force participation rate affected your talent pool? Is it harder to find good employees today than it was five years ago? Let us know in the comments section below!

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