Let me repeat....there are something like 25% who DO NOT WANT to work NOR NEED to work. The labor participation rate even in boom times is about 70%, not 100%.
There is no case to make that its 38-42%. Are there a few points here and there for the over 65 crowd? Perhaps, but again, 70% is full labor participation, not 100%. Having said that, at 62-63, that means there’s another legit 7-8% that should be added to the BS 5% mark....putting legit UE (U3) at 12-13%. God knows what the U6 would be...certainly over 20.
From the Bureau of Labor Statistics: http://www.bls.gov/bls/cps_fact_sheets/lfp_mock.htm
Labor Force Participation
Fact Sheet Prototype
Basic concepts
The labor force participation rate is the percentage of the population that is either employed or unemployed (that is, either working or actively seeking work)
People with jobs are employed.
People who are jobless, looking for a job, and available for work are unemployed.
The labor force is made up of the employed and the unemployed.
People who are neither employed nor unemployed are not in the labor force.
See http://www.bls.gov/cps/cps_htgm.htm and
http://www.bls.gov/cps/eetech_intro.pdf
for more detailed technical information