Trends in Labor Force Participation in the U.S.

In the 1950s and 1960s, the labor force participation rate, or LFPR, for Americans aged 16 and above was just about 60%. This rate remained relatively stable until the early 1970s, after which it began to rise steadily through the 1980s and 1990s.

Two major factors drove this increase. First, Baby Boomers—born between 1946 and 1964 in a postwar birth surge—entered the workforce in unusually large numbers.

Second, cultural and economic shifts in the 1970s opened new opportunities for women. Together, these changes pushed the LFPR to a peak by 2000.

But the trend reversed after 2000. By 2015, the LFPR had declined to about 62.7%. The COVID-19 pandemic later triggered a further drop.

As of April 2025, the LFPR stands at 62.6%.

This decline is largely due to retiring baby boomers, increased school enrollment, fewer stable job opportunities for low-skilled workers, and the growing impact of automation.