Why Did Labor Force Nonparticipation Increase from 1999 to 2022?

According to data from the U.S. Bureau of Labor Statistics (BLS), the labor force nonparticipation rate—the percentage of people aged 16 and older who are neither working nor looking for work—rose significantly between 1999 and 2022. As workforce development professionals, understanding the reasons behind this trend is essential to addressing current workforce challenges.

BLS data shows that retirement was the largest driver, accounting for nearly three-fourths of the overall increase in nonparticipation during this period. The aging Baby Boomer generation played a major role as many transitioned out of the workforce. Other factors, including school attendance, illness or disability, and home responsibilities, also contributed to this rise, particularly among younger people and those aged 25 to 54.

For men aged 25 to 54, illness or disability became the primary reason for leaving the workforce, while women in this group were more likely to cite home responsibilities. The data also reveals that educational attainment played a significant role—those with less education were far more likely to drop out of the labor force.

This report dives deep into these trends and provides insights crucial for shaping future workforce policies. It’s an opportunity for workforce professionals to understand the forces at play and design strategies that encourage greater participation, particularly among groups facing the greatest barriers.

Explore the full report from the BLS for a comprehensive breakdown of labor force nonparticipation over the past two decades.