why is the labor force participation rate declining 
the participation rate has steadily declined since the late 1990s largely due to the retirement of baby boomers and other significant demographic changes in 2020 there was a sharp drop in labor participation due to the covid 19 pandemic which shuttered many businesses and forced many people to temporarily leave the workforce 17the bottom linethe unemployment rate is more closely watched but it is best understood when viewed in conjunction with the labor force participation rate that s because the labor force participation rate counts those discouraged workers people who are willing and able to work but have given up looking for a job neither of these numbers exists in a vacuum many social economic and demographic factors cause the unemployment rate and the labor force participation rate to fluctuate over time 