The labor force participation rate, which measures the working-age population of those either employed or looking for a job, fell to 61.5%, the lowest since March 2021, according to the Bureau of Labor Statistics. Not counting the COVID years, this is the lowest since 1976! The labor force plummeted by 720,000 in June.
The CNBC report on this data notes: “The drop in participation is sometimes attributed to a shrinking immigrant population and retiring baby boomers and Gen Xers. However, in June the biggest plunge came from what is defined as ‘prime age’ workers, or those between the ages of 25 and 54. That rate fell 0.6 percentage point to 83.3%, its lowest since December 2023.
