Economic Take

Don’t Overinflate the Shrunken Labor Force

February 25, 2020

The labor force participation rate has dropped 3 percent in the past decade, leading some economists to reason there are many people who have yet to return to the job market. But with low unemployment and the full recovery of participation for people in their prime working years (25-54 years old), the overall decrease is likely due to the outsized retirement of baby boomers. Pay more attention to the steady trends in jobless claims to help chart the future course of the economy.