An increasing number of Americans are leaving the labor force entirely. More than 100 million people are now neither employed nor actively seeking work, marking a record high. Several structural factors are contributing to this trend, including an aging population, longer periods spent in higher education, and shifts in workforce participation following the pandemic. The sharp rise seen in 2020 may also reflect a wave of early retirements and changing lifestyle priorities among many workers. This trend is important to monitor because the long-term strength of the U.S. economy, along with the sustainability of major social programs, depends heavily on a large and active workforce supporting economic growth and tax revenues.
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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