US Real Disposable Income per Capita and US Population Not in Labor Force

Real Disposable income per capita has been flat since late 2008 in the US.  This shows the true weakness and malaise of the US economy.

US disposable income

Part of this reason is the lack of jobs which should not be news to anyone even though the headline unemployment number in the US is 7.8%.  One of the major reasons the headline number is so lo is because of this graph below.  The number of people considered not in the labor force has jumped significantly versus the historical trendline.  If you have stopped looking for work in the past four weeks you get booted into the Not in Labor force category and are no longer part of the headline unemployment number.

Us unemployment not in labor force

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