More job seekers give up, reducing unemployment

Why is the unemployment rate down? Partly because so many have stopped looking for work

Paul Wiseman, AP Economics Writer, On Thursday June 2, 2011, 8:08 am EDT

WASHINGTON (AP) -- Where did all the workers go?

The labor force -- those who have a job or are looking for one -- is getting smaller, even though the economy is growing and steadily adding jobs. That trend defies the rules of a normal economic recovery.

Nobody is sure why it's happening. Economists think some of the missing workers have retired, have entered college or are getting by on government disability checks. Others have probably just given up looking for work.

"A small work force means millions of discouraged workers, lower output in the future and a weak recovery," says Rep. Kevin Brady of Texas, the ranking Republican on the Congress' Joint Economic Committee. "Those are unhealthy signs."

By the government's definition, if you quit looking, you're no longer counted as unemployed. And you're no longer part of the labor force...

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