Having been in the job market for 10 years now and having met an awful lot of people in the same boat, I can tell you Dr. Vedder's analysis is180% wrong. In the first place most people that are counted as having dropped out of the workforce still really want a job and are looking. It is just they have dropped out of the way the BLS calculates things. Take the degreed, experienced engineer who takes a part time job as a greeter at Wal Mart. According to government bean counters his is employed. Take the same guy if neither Wal Mart nor McDonald's has been willing to hire him because he is "overqualified" He is still looking. He never qualified for "unemployment insurance" Thus to the BLS he is no longer looking even though he is.