Labor Force Participation Rate Essay

Decent Essays
In America, there is a large amount of job openings going un-filled because there are not enough people looking to fill those jobs. The percentage of adult Americans that are working or actively looking for work is at 62.6 percent (Soergel, 2015). The labor force participation rate in America has been in a decline, which reflects the changes in demographics and the effects of different economic policies. The labor force participation rate is the ratio between the labor force and the overall size of the national population in the same age range. One reason that is thought to have affected the participation rate is that the “baby boomers” are now retiring in large quantities at the same time. The “baby boomers” are the people born between 1946 and 1964, after World War II. Another reason for the decline in participation rate is the stigma of immigration and having immigrants in the United States, this is decreasing the supply for many high-skilled jobs. The monthly participation numbers declined further during and after the major Recession in 2007, more so, than at any other point in U.S. history. Labor force participation was as high as 66…show more content…
This is the age range that has almost entirely finished their educational requirements and is not yet retiring (Soergel, 2015). As you can see in the graph shown in figure 1, the participation has started to decline more since 2010 than in any other year. Economists generally expect the labor force participation rate to continue its gradual decline as more “baby boomers” retire. And, as more young adults choose to further their education, instead of entering the workforce. “These trends inherently are causing the U.S. to fall short of its output potential, which is why many economists consider labor force participation to be a measure of slack in the domestic labor market (Soergel,
Get Access