Labor force participation rate declining since 2000
The labor force participation rate has been declining consistently, from a high of 67.1 percent from 1997 through 2000 to 62.9 percent in 2018. We project the rate to continue declining, to 61.2 percent by 2028. While the rate stabilized in recent years because of stronger economic growth, we project the labor force participation rate to continue declining over the decade. (Historical data in this Spotlight stop at 2018 because BLS projections use 2018 as the base year.)
Women’s increasing labor force participation rate during the latter half of the 20th century bolstered overall labor force growth. This trend ended in the 21st century.
Participation rates could have been expected to flatten, rather than decline, if not for the second demographic shift: Older age groups are growing faster than the population at large, especially people 65 years and older. Individuals in these groups are less likely to be in the labor force.