American Workers: Vanishing Under Obama

For the first time in the nation's history, the number of working-age Americans not in the labor force has crept up to 90.473 million people, a disturbing trend that threatens the economic future of the United States.

Since President Obama was sworn into office, there are more than 5.7 million fewer people working or looking for a job.  American workers are vanishing by the hundreds of thousands every year and the number of laborers underemployed may be as high as 17.4 percent, according to Gallup researchers.  

Yet this administration still touts how it hauled the country out of a deep recession.  The numbers from the federal government's own Bureau of Labor Statistics (BLS) offer a different economic reality--one that underscores the failure of Obama's policies.

The official unemployment rate stands at 7.3 percent, a full two percentage points higher than the White House promised four years ago when it unleashed billions of dollars in economic stimulus spending.  However, the unemployment percentage only masks the real problem.

Fewer Americans than ever are participating in the workforce.  When Obama swept into the Oval Office, 65.7 percent of the working age population was employed.  The most recent figures from the BLS show it has plummeted to 58 percent, the lowest in American history.

Worker participation rates may sound like economic jargon.  But it matters because it is a key gauge of the employment situation.  Many economists argue participation rates are more reliable than unemployment figures as a measure of the economy's strength.

The precipitous fall in participation rates means that the overall supply of employed workers is dropping.  As a result, the economy is being driven by a smaller portion of the population.  That leaves fewer people to pay taxes, but more Americans who qualify for government assistance.

As the supply of laborers dries up, it shrinks the available pool of workers necessary for economic growth.  Many American businesses are beginning to worry about an adequate supply of workers to fill jobs as the last of the Boomer generation retires.

The United States' economic standing in the world has begun to reflect the decline.  Average worker participation rates in 16 countries with developed economies now surpass the U.S.  Once America owned the title of job creation leader.

The Heritage Foundation, a national think-tank, found that the drop in labor force participation "accounts for about the entire net drop in the unemployment rate over the past three years."  In other words, if participation rates had remained static, unemployment would be even higher.

How can the United States reclaim its position as the world leader in worker participation?

It begins with a smaller government and less intervention.  As the federal government appropriates more power and influence over the economy, the result is a shrinking private business sector that spawns fewer jobs for a growing population.

Jobs, living standards and economic opportunities depend on a growing workforce.  The U.S. faces a dim economic future unless there is a sharp reversal of current trends and policies.