The labor force participation rate is 1.3pp below what it was in February 2020.
You would have expected the aging population to lower it 0.4pp over that period.
The other 0.9pp is not explained by standard demographic changes.
You would have expected the aging population to lower it 0.4pp over that period.
The other 0.9pp is not explained by standard demographic changes.
About two-thirds of the 0.9pp shortfall in age-adjusted LFPR shortfall is due to men and about one-third is women. Older workers are playing a big role in the decline but is across all age groups.
The employment rate decline tells a virtually identical story--given that the headline unemployment rate and unemployment rates for most groups similar to what they were pre-COVID.
P.S. These "age adjusted" numbers show a smaller contribution from 55+ than you sometimes see in people's Twitter posts. Is important to distinguish the unusually large decline in LFPR for 55+ from the fully expected decline due to a higher ratio of 80 year olds to 60 year olds.
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