Is America At Full Employment? Not Even Close

IBD reports:

All told, there are 254.6 million people in the potential workforce. But just 160.2 million are working. That leaves a record 94.4 million potential workers.

The New York Times' Ben Casselman narrows it further, reporting that 78.6% of the 25-54 year old population — the prime working age — is employed. In 2000, that number was 82%, with little or no inflation, and it was still above 80% before the recession. So we're below the recent norm.

Even if you go by the Labor Department numbers, the labor market slack is quite large. At the official rate of unemployment, 4.4%, there are just over 7 million unemployed and available for work. But at the broader jobless rate of 8.6% we mentioned above, which included not just the unemployed but discouraged and underemployed workers, that grows to nearly 14 million.

You get the picture.

These numbers, taken together, suggest there are literally millions of workers on the sidelines who, with the added attraction of lots of interesting, challenging new jobs and higher wages, would return to to work. The idea that we have hit some magical wall in job creation is just not true. "Full employment" as populary conceived doesn't exist.

Fake and real numbers.