Why Do We Have Reduced Participation in a Labor Shortage Environment? - Mish Talk

Why Do We Have Reduced Participation in a Labor Shortage Environment? – Mish Talk

Labor force participation rates from the BLS, chart by Mish

Labor pressure participation charges from the BLS, chart by Mish

Participation Rate Chart Notes

  • The Labor Force Participation Rate is the calculated because the labor pressure divided by the working-age inhabitants.
  • The Labor pressure is the variety of folks working or actively searching for work. Unemployed individuals are in the labor pressure.
  • Participation charges have usually been declining apart from age group 60-64 and 65+ (the latter declining since 2019).
  • In December 2019, the LFPR for these aged 25-54 was 82.9% and is 82.4% as of December 2022.
  • That 0.5 p.c drop represents 636,000 folks.