DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/376795
46 DARREN JOHNSON, Broker darrenjohnson2@sbcglobal.net www.johnsonpremierrealty.com With Offi ce Locations: 4606 Cypress Creek Pkwy. Ste. #400 Houston, Texas 77069 Offi ce (281) 647.2448 Fax (248) 630.1599 Cell (313) 506.8861 Commercial & Residential REO and Short Sale Certifi ed 7071 Orchard Lake Road, Suite 110 West Bloomfi eld, Michigan 48322 Offi ce (248) 737.9993 Direct (313) 506.8861 Fax (248) 630.1599 SERVICE PROVIDED: REO Management & Accusition, Property Management, BPO Service, Preservation Services, Short Sale Services NAREB, AREAA, NAR, NAHREB, NRBA, MBE (Minority Business Enterprise) NAR, Detroit Association of Realtors (Director of Board) Helping To Restore The Communities With The American Dream DARREN JOHNSON JOHNSON PREMIER REALTY CO JOHNSON PREMIER REALTY CO SERVING: Detroit Metropolitan Area & Houston Metropolitan Area | 16 Years experience in real estate/REO LABOR FORCE PARTICIPATION RATE PROBLEMATIC FOR RECOVERY Much has been made of the recent drop in unemployment from its highs during the Great Recession to where it currently sits at 6.1 percent. But the often untold story in the headlines is the effect that the labor force participation rate has on the unemployment rate and the overall economy. Put simply, the conventional unemploy- ment rate is only a measure of unemployment within the segment of the population that is a part of the labor force, defined as people who are employed or actively looking for work. People who fall outside of that definition are not a part of the active labor force and, thus, fall outside of conventional unemployment measurement. But make no mistake; a lower labor force participa- tion rate is a sign of a troubled job market. A report released by the White House Council of Economic Advisors points to a number of factors that lead to the conclusion that the labor force participation rate is unlikely to return to the past levels it enjoyed before the economic downturn any time soon—and maybe never again. According to the report, since the final quar- ter of 2007, the labor force participation rate has fallen from 65.9 percent to 62.8 percent in the second quarter of 2014, a decline of 3.1 percent- age points and a drop to nearly the lowest level seen since the 1980s. e council pointed to a number of factors depressing the number. e main culprit is the fact that the United States population is aging. As baby boomers retire and live longer than prior generations, it makes perfect sense that a greater portion of the U.S. population would not be active in the job market. e report suggests that more than half of the drop in participation is due to the aging population. Surprisingly the report downplayed the effect of the financial crisis on the participation rate, attributing only 0.5 percent to workers who have voluntarily left the workforce because of discouragement, returning to school, or some other reason. e rest of the decline is attributed to a number of trends, including historical patterns that were in place before the downturn. Whatever the reason, the anemic labor force participation rate is a cause for concern going forward. Since the baby boomer genera- tion, the population share of each successive generation continues to shrink. at fact and the historical trends that are likely to continue paint a grim picture. Policymakers will have to be creative in their approach to confronting these issues. Builder confidence rose to 55 percent in August 2014 on the Housing Market Index, according to National Association of Home Builders. KNOW THIS