Labor Force Participation Inches Up

Labor Force Participation Inches Up

I’ll put a negative spin on the Labor Force Participation Rate inching up by one-tenth of one percent: it did so as many who were collecting now expired COVID benefits can no longer afford to sit on the couch. This also explains why personal credit card debt has moved markedly higher over the past year – the consumer is weak and needs to tap into credit to pay for living expenses. The consumer is not stronger today versus a year ago but rather weaker and will continue to weaken this year and next.

The labor force participation rate ticked up to 62.6% in March, up from 62.5% in February.