GDP

The GDP figure for the first quarter was released today and surprised the expects with a negative 1.4%. The question arises how can you have a negative GDP with an unemployment rate of 3.5% and the answer is that there are 9 million people who are able to work who have chosen not to work. These workers could have added to the GDP but chose not to for various reasons. When you chose not to work you are not counted as unemployed. The labor participation force is at 61% instead of the 63% it was two year ago. Many of these people took early retirement.