Labor force participation is dropping off for two reasons: (1) the first wave of baby boomers has hit retirement age and (2) a sharp drop in participation among workers under 25. Part of the latter drop reflects increased school attendance, but a big chunk is due to lousy job market opportunities.
A few more interesting details:
- The layoff rate has returned to normal levels but the new hire rate is still well below what we have seen in earlier recoveries
- We still have over 4m workers who have been unemployed 6 months or more and those workers have only a 10% chance of getting work in any given month
- There are still 2.4m fewer jobs now than at the start of the Great Recession