If the denominator declines and the numerator stays flat the percentage declines. That’s the point of the labor force participation rate.
One of the structural issues with the labor force participation rate is demographics. Baby boomers are retiring. The rate has been declining since the late 90’s (i.e. this is nothing new).
There are, of course, issues with job growth that are impacting the participation rate.
That’s a great, concise way to discuss with people. Thanks.
I am just trying to figure out what really is happening with the job situation and the economy in general. Both sides have good numbers to point at. Visibly, there is recovery...construction, decent growth, etc. The job market has definitely stabilized. How good or bad is it? That’s what I am having a hard time grasping. Are we ‘okay, but not great’,on a slow steady road to recovery, or mired in a long term ‘bottom’ with only growth to reflect natural population and economic expansion and monetary policy. It’s hard to tell.