In 2006, the federal bureau of labor statistics under George W. Bush concluded the labor participation rate would continue to fall for decades. Labor participation rate is not a strong indicator given our aging workforce.
Yes, the decline in the Labor Force Participation Rate due to Demographics has been known for quite some time. It is the inevitable consequence of an aging work force with birthrates below replacement level for a few decades.
The problem is the Labor Force Participation Rate has fallen much quicker than any of the forecasts based upon Demographics. The reason for this is the lack of people working in their prime working years, the funny thing is the LFP would be even lower if Boomers were retiring at the rate they are supposed too, but the weaker economy had led many of them to delay retirement which in turn harms those who should be working.
A Closer Look at the Decline in the Labor Force Participation Rate
The problem is the Labor Force Participation Rate has fallen much quicker than any of the forecasts based upon Demographics. The reason for this is the lack of people working in their prime working years, the funny thing is the LFP would be even lower if Boomers were retiring at the rate they are supposed too, but the weaker economy had led many of them to delay retirement which in turn harms those who should be working.
A Closer Look at the Decline in the Labor Force Participation Rate
https://www.stlouisfed.org/publications/regional-economist/o...