Decreasing Workforce Participation

The Associated Press reports via Yahoo News on the declining U.S. workforce participation rate, that counts only those working or actively looking for work. They attribute the decline to four factors:

— The retirement of the vast baby boom generation.
— Younger workers are starting their careers later.
— The number of part-timers who would prefer full-time work remains high. (AP says blame Obamacare)
— Weak pay growth.

COTTonLINE doesn't argue with any of that. However, they fall to mention another factor we believe plays a major role in decreased workforce participation: the increased availability of alternative income sources: disability, SNAP, etc.

Once individuals obtain Social Security Disability payments plus food stamps, and adjust their lifestyle downward to live on same, they rarely go back to work. Effectively they "retire" and leave the workforce more or less permanently. Literally millions have done this.