The U.S. labor-force participation rate has fallen to 61.9%, its lowest level since 1977 outside the pandemic, underscoring a growing structural challenge for the economy, The Wall Street Journal writes.
While job growth remains solid, fewer Americans are working or seeking work, driven largely by demographic shifts and policy changes.
An aging population is the primary factor, as baby boomers continue to retire and older workers exit the workforce earlier than expected. Participation among those 55 and older has dropped sharply, with some opting out amid economic uncertainty and technological disruption.
At the same time, reduced immigration has shrunk the pipeline of younger workers entering the labor force. Economists warn that a smaller workforce could slow long-term economic growth and lead to labor shortages, even as productivity gains help offset some of the impact for now.
The Wall Street Journal has the full story.
