Why is the US Laborforce Shrinking?

One of the issues that has emerged during these difficult economic times is the declining rate of laborforce participation in the US.

Popular accounts typically attribute this to the severity of theDemography & Labor Force Participation recession:  unemployed folks tired of looking for jobs that weren’t there, so they just quit looking altogether.  A recent report by the Congressional Budget Office (CBO) finds another culprit:  the aging of the population.  The graph to the right has the full story.  (Click on it to see a larger version.)

You can read the full CBO report here.

 

 

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