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What’s Behind the Sharp Drop in Labor Force Participation?

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Abstract

In the first half of 2026, the falling labor force participation rate was mostly due to a statistical correction and an aging population. But a sharp drop in prime-age workers also occurred.

Suggested Citation

  • Alexander Bick, 2026. "What’s Behind the Sharp Drop in Labor Force Participation?," On the Economy 103599, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:l00001:103599
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    File URL: https://www.stlouisfed.org/on-the-economy/2026/aug/what-is-behind-sharp-drop-labor-force-participation
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