The unemployment rate only takes into consideration people that are working or actively looking for work. You also have to consider the labor participation rate, which is the percentage of work age people who are working or looking for work. Under Trump, the labor participation rate went up and unemployment went down. During the pandemic, unemployment went up and the participation rate went down. Under Biden, unemployment has gone down, but the participation rate has stayed low as well.
The labor participation rate has stayed low because retirees are now outnumbering new entries into the labor pool. Retirees don’t count in the unemployment rate, but they are considered “available workers” as long as they aren’t in prison or nursing homes.
Does the labor participation rate include people who are retired?