More people of non-working age in the population. More (under 18, (or under 22 if they’re in college) and not actively looking for a job, more full retirement age retirees, more early retirement retirees) as a percentage of the entire population. Much of the decline in the participation rate over the last decade has been a result of shifting demographics as opposed to a structural change to employment rates. The participation rate peaked around 1990 as all baby boomers entered the work force and the stay-at-home-moms all but disappeared. It was flat for a decade until 2000, when the oldest baby boomers started to retire early. We’re about 10 years away from the youngest baby boomers hitting retirement age. The current trend (since 2000) is (and was) predictable based on demographics, irrespective of changes in the economy.
