What’s the reason for the Decline in Labor Participation?

Kudos to Mish who gives a stellar breakdown of what is pushing our labor force participation rate down. This has been greatly debated. One side of the coin claims it’s due to retirement, and the other side claims it’s because of discouraged workers. 

According to Mish (and the FED), it’s due to retirement

I highly recommend this article. Take a look around Mish’s Blog, also. I tend to be optimistic about our current market (especially in the long run), and he tends to be skeptical and a tad bit bearish. It’s always good to hear a different take on the same data… you may come away with a more balanced take on where we are today.


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