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Published 17 hours ago • loading... • Updated 10 hours ago
Workers keep leaving the US labor force. Experts can't agree why
Economists cite retirements, caregiving and job mismatches as the labor pool falls, with some experts saying long-term disconnection from work is growing.
Labor force participation rates are declining, forcing economists to analyze why workers are leaving the market. Many individuals are departing entirely due to discouragement or caregiving responsibilities.
A booming stock market has enabled older Americans to retire early. Bill Adams, chief economist at Comerica Bank, noted that those with savings feel "comfortable" stepping away from the workforce.
Michelle Evermore, senior fellow at the National Employment Law Project, stated that return-to-office mandates "disproportionately drove women" out of the workforce. High caregiving costs make maintaining employment difficult for many.
Glassdoor chief economist Daniel Zhao noted that some workers leave for the "wrong reasons," including persistent discouragement, which indicates a market struggling to retain talent despite recent hiring growth.
A sustained decline in the labor force could ultimately slow economic growth. Companies face potential worker shortages as available labor fails to meet "hiring expectations.