“Which means that if you put it in percentage points, 40 percent of the decline in the number of unemployed people since 2010 is just people leaving the labor force,” UNCG economist Andrew Brod said.
He said if you add back the number of people who left the labor force but still are unemployed, the actual unemployment rate is 8.7 percent — well above the national rate of 6.3 percent.
Another analyst has been sounding the same alarm.
“We’ve been writing for six or eight months that most of this big unemployment drop is people falling out of the labor force because they can’t find jobs,” said Allan Freyer, a public policy analyst with the North Carolina Budget and Tax Center, a Raleigh-based think tank whose mission is to promote jobs and eliminate poverty.
He said that from January 2013 through January 2014, four of every 10 unemployed workers in the state found a job — the other six stopped looking.