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What the numbers say: The U.S. Labor Force Participation Rate (LFPR), which measures the number of working-age Americans who are employed or looking for a job, rose to 62.6% in March. Despite strong job gains over the last year and near-record-low unemployment, the LFPR is still below the pre-pandemic level of 63.3%. Relevance: The COVID-19 pandemic accelerated the longer-term decline of the LFPR, which peaked at over 67% in the early 1990s and fell 5.8 percentage points from 2000 to 2020. What Happened? The long-term decline of the LFPR is shaped by a number of factors: early retirements, people not wanting to work for low wages, long-term disability, and people staying in education for longer. |
