Skip to content

Drop in Labor Participation Signals Weak Economy

Solovic Logo

For immediate release

ST. LOUIS, MO – “Some will trumpet the June drop of two-tenths of one percent in the unemployment rate as great news, but in fact it just masks the truth of what is happening in the US economy: The administration is breaking the back of the job creators,” said Susan Solovic, THE Small Business Expert, when the June 2015 employment numbers were released by the Labor Department.

US employers added 223,000 jobs in June and the unemployment rate fell to 5.3 percent, compared to 5.5 percent in May. Labor force participation, however, fell to its lowest level since 1977 and the average workweek has stalled at 34.5 hours. The Labor Department also lowered the number of jobs added in April and May by 60,000 overall.

“Washington is badly hurting small businesses with the Affordable Care Act, increased regulations and new labor law rulings,” Solovic added. “For example, under the Affordable Care Act, when many employers hit a 30-hour workweek level with their employees, they are forced to buy overly expensive health insurance. Is it any wonder the workweek is failing to grow?” she asked.

“The administration has imposed regulation-after-regulation on businesses in recent years. Every regulation costs money; money which otherwise could have gone to increasing wages and hiring additional employees to carry out expansion plans. On top of that, the 150,000-plus pages of federal regulations prevent many would-be entrepreneurs from even testing their ideas in the marketplace,” Solovic explained.

Solovic warned about another change to labor laws that the Obama administration is currently preparing to release. “The administration is gearing up to redefine exempt and nonexempt employees with the hope of increasing worker pay by forcing employers to pay more overtime. However, if these new regulations are imposed, businesses will merely cut jobs and reduce hours to minimize costs. In the end, workers – and the labor force in general – will suffer,” she said.

Solovic is a noted expert on small business. She frequently appears on a wide variety of network programming, including the Fox Business Channel. Along with best selling books, her writing has appeared in Entrepreneur, The Wall Street Journal, and other major publications.

For additional information contact:

Susan Solovic:

susan@susansolovic.com

1-866-277-8684 ext. 11

# # #

Add Your Comment (Get a Gravatar)

Get a Gravatar! Your Name

Your email address will not be published. Required fields are marked *.

*

Time limit is exhausted. Please reload CAPTCHA.