The Participation Rate Mystery - Solved!

By: Gordon Long | Mon, Dec 7, 2015
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The Participation Rate Mystery - Solved!

With Charles Hugh Smith & Gordon T Long

25 Minutes - 22 Slides

Charles Hugh Smith and Gordon T Long discuss the puzzle of the falling US Civilian Labor Participation Rate in which all the pundits express concern but few agree on what the root cause is.


Relentless Technology Adancement - Gaining The Right Perspective

Together they show that it is instructive to start with the larger picture going back to 1970 when massive historic computer technology advancements truly began to be adopted.

Technology Adoption Rate

Schumpeter's Creative Destruction was in full swing and accelerated as every industry was re-invented by labor saving technology. As this wave gained momentum real, family supporting full time jobs became scarcer while fewer equivalent paying new jobs were created when the ratio to population growth was properly factored in.


Rapid Entry of Women in The Workforce Distorts Comparisons

Examining the actual participation rate chart from 1970 there is clear evidence of the initial rapid entry of women into the workforce. This surge distorts effective comparisons to today's developments and the cause of the more recent accelerating problem.

Rapid Entry of Women in The Workforce Distorts Comparisons


Three Key Drivers of The Post 2008 Decline

During the post 2008 financial crisis period, there has been at least three key drivers of the further acceleration in the decline of the US labor participation rate. This is in addition to the ubiquitous adoption of productivity enhancing technology and the effective de-industrialization of America:

Childcare Costs

... all of these drivers are discussed with insightful discussion on the subject with supporting graphics and illustrations. Listen below:

 


 

Gordon Long

Author: Gordon Long

Gordon T. Long
Publisher - LONGWave

Gordon T. Long

Gordon T. Long has been publically offering his financial and economic writing since 2010, following a career internationally in technology, senior management & investment finance. He brings a unique perspective to macroeconomic analysis because of his broad background, which is not typically found or available to the public.

Mr. Long was a senior group executive with IBM and Motorola for over 20 years. Earlier in his career he was involved in Sales, Marketing & Service of computing and network communications solutions across an extensive array of industries. He subsequently held senior positions, which included: VP & General Manager, Four Phase (Canada); Vice President Operations, Motorola (MISL - Canada); Vice President Engineering & Officer, Motorola (Codex - USA).

After a career with Fortune 500 corporations, he became a senior officer of Cambex, a highly successful high tech start-up and public company (Nasdaq: CBEX), where he spearheaded global expansion as Executive VP & General Manager.

In 1995, he founded the LCM Groupe in Paris, France to specialize in the rapidly emerging Internet Venture Capital and Private Equity industry. A focus in the technology research field of Chaos Theory and Mandelbrot Generators lead in the early 2000's to the development of advanced Technical Analysis and Market Analytics platforms. The LCM Groupe is a recognized source for the most advanced technical analysis techniques employed in market trading pattern recognition.

Mr. Long presently resides in Boston, Massachusetts, continuing the expansion of the LCM Groupe's International Private Equity opportunities in addition to their core financial market trading platforms expertise. GordonTLong.com is a wholly owned operating unit of the LCM Groupe.

Gordon T. Long is a graduate Engineer, University of Waterloo (Canada) in Thermodynamics-Fluid Mechanics (Aerodynamics). On graduation from an intensive 5 year specialized Co-operative Engineering program he pursued graduate business studies at the prestigious Ivy Business School, University of Western Ontario (Canada) on a Northern & Central Gas Corporation Scholarship. He was subsequently selected to attend advanced one year training with the IBM Corporation in New York prior to starting his career with IBM.

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

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