Labor Force Participation Rate Falls To Lowest In 50 years (cnbc.com)
(Thursday July 02, 2026 @05:05PM (BeauHD)
from the mass-exodus dept.)
- Reference: 0184277850
- News link: https://news.slashdot.org/story/26/07/02/213229/labor-force-participation-rate-falls-to-lowest-in-50-years
- Source link: https://www.cnbc.com/2026/07/02/job-seekers-giving-up-labor-force-participation-rate-falls-to-lowest-in-50-years-outside-of-covid-era.html
The US unemployment rate [1]fell to 4.2% in June largely because 720,000 people left the labor force, pushing participation to 61.5%. Excluding the Covid-era jobs market, that's the lowest participation rate since June 1976. CNBC reports:
> The decline in the labor force marks a "massive exodus" driven by multiple factors, said Mike Reid, head of U.S. economics at RBC. "The unemployment rate fell to 4.2% as both the number of unemployed workers and the size of the labor force pulled back," Reid wrote in a post-report commentary. "This may well be a story of retirements but could also be a story of prior job seekers dropping out of the labor force."
>
> [...] [T]he rolls of those counted as not in the labor force, a group that includes the unemployed and those not looking for work, jumped by 832,000. And while the establishment survey, which counts jobs filled, showed growth for the month of 57,000, the survey of households, which counts the actual level of those working, tumbled by 507,000. On a year-over-year basis, the labor force is down by just over 1 million, while the level of the employed also has fallen by 1.06 million and the ranks of the unemployed have risen by 40,000. The employment-to-population ratio slipped to 59% in June, the lowest since October 2021. All that has happened while the unemployment rate has risen by just one-tenth of a percentage point to 4.2%.
>
> The drop in participation is sometimes attributed to a shrinking immigrant population and retiring baby boomers and Gen Xers. However, in June the biggest plunge came from what is defined as "prime age" workers, or those between the ages of 25 and 54. That rate fell 0.6 percentage point to 83.3%, its lowest since December 2023. "Looking at the statistics now, that argument doesn't hold up so well," North said of the retirement and immigration rationale. "I hate to use the word 'alarming,'" he added, but said the numbers are cause for concern.
[1] https://www.cnbc.com/2026/07/02/job-seekers-giving-up-labor-force-participation-rate-falls-to-lowest-in-50-years-outside-of-covid-era.html
> The decline in the labor force marks a "massive exodus" driven by multiple factors, said Mike Reid, head of U.S. economics at RBC. "The unemployment rate fell to 4.2% as both the number of unemployed workers and the size of the labor force pulled back," Reid wrote in a post-report commentary. "This may well be a story of retirements but could also be a story of prior job seekers dropping out of the labor force."
>
> [...] [T]he rolls of those counted as not in the labor force, a group that includes the unemployed and those not looking for work, jumped by 832,000. And while the establishment survey, which counts jobs filled, showed growth for the month of 57,000, the survey of households, which counts the actual level of those working, tumbled by 507,000. On a year-over-year basis, the labor force is down by just over 1 million, while the level of the employed also has fallen by 1.06 million and the ranks of the unemployed have risen by 40,000. The employment-to-population ratio slipped to 59% in June, the lowest since October 2021. All that has happened while the unemployment rate has risen by just one-tenth of a percentage point to 4.2%.
>
> The drop in participation is sometimes attributed to a shrinking immigrant population and retiring baby boomers and Gen Xers. However, in June the biggest plunge came from what is defined as "prime age" workers, or those between the ages of 25 and 54. That rate fell 0.6 percentage point to 83.3%, its lowest since December 2023. "Looking at the statistics now, that argument doesn't hold up so well," North said of the retirement and immigration rationale. "I hate to use the word 'alarming,'" he added, but said the numbers are cause for concern.
[1] https://www.cnbc.com/2026/07/02/job-seekers-giving-up-labor-force-participation-rate-falls-to-lowest-in-50-years-outside-of-covid-era.html
Re: (Score:2)
by dsgrntlxmply ( 610492 )
Fat content of most modern billionaires is too low to be graded any higher than Cutter/Canner. Also, many modern billionaires show evidence of brain prion disease from unorthodox longevity therapies.
Stats are complicated (Score:2)
by Baron_Yam ( 643147 )
But I've never believed the unemployment rate was a valid measure of economic health. The numbers are fudged in too many ways.
How many people are able to work, want to work, and can't find full time employment above poverty line wages? That's what you need to look at.
"Left the labor force" (Score:2)
by Rosco P. Coltrane ( 209368 )
> 720,000 people left the labor force
This is the blandest, most watered-down way to say "lost their job" yet. Quite nauseating.
Probably people entirely disillusioned (Score:2)
Good for the MAGA morons, because they can claim "unemployment is down". Very bad for the country.
Re: (Score:2)
I was thinking the same, they play with numbers so that the unemployment rate looks better than it is, discouraged workers, those who haven't looked in the last 4 weeks (which could for a variety of reasons, illness, family issues, taking time to retrain, transportation problems, etc.), or a parent who has to stay home because childcare is insanely expensive and they'd spend more on it than they'd make (yes, it actually can happen). And people giving up looking for working or just retiring a bit early becau
AI and Robots (Score:1)
Isn't AI and Robots supposed to take over everyone's jobs?