Record 105.8 Million Americans Now ‘Not In the Labor Force’

The number of Americans not participating in the labor force hit an all-time high in June, surpassing even the darkest months of the COVID-19 pandemic and raising fresh questions about the true health of the American economy.According to data from the Federal Reserve Bank of St. Louis, 105.8 million Americans are now classified as “not in the labor force” (NILF) — meaning they are neither employed nor actively seeking work. That figure jumped by 832,000 in June alone and has grown by 2.5 million since the start of the year. For context, at the peak of pandemic-era shutdowns in 2020, the NILF population reached about 103.6 million. Today’s number is 2.2 million higher.The Bureau of Labor Statistics defines the NILF category broadly, capturing everyone aged 16 and over who isn’t working — including retirees and full-time students. Retirees make up the largest share, accounting for roughly 50 percent of the total, a reflection of the aging Baby Boomer generation. Increasing retirement, however, doesn’t explain the full picture. Some 5.3 million NILFs — around five percent of the total — have abandoned the search for work. Another 22 percent, or more than 23.3 million Americans, are on long-term illness, disability, or other public benefits. That share is larger than the percentage of Americans over 16 enrolled in full-time education.Associated with the NILF pickup is the growing cohort of working-age Americans who are fit but choose not to work. The labor force participation rate fell to 59 percent in June — its lowest level since September 2021.Earlier this year the former House speaker, Newt Gingrich, citing American Enterprise Institute economist Nicholas Eberstadt, author of the book “Men Without Work,” said the problem is out of hand.“According to Eberstadt, among unemployed men, there are three who are not looking for work for every one trying to find a job. This is a tragedy for America—and for the men whose lives are being narrowed and limited by a system that encourages complacency and dependence,” Mr. Gingrich wrote on Facebook.“If we are going to compete with China and India economically, we need a fully committed, enthusiastic workforce. If we are going to have a healthy, crime- and addiction-free society, we must develop goals, programs, and policies which arouse people’s enthusiasm and draw them into the game of work, prosperity, and independence,” he wrote.The chief economic adviser at Allianz, Mohamed El-Erian, agreed that the numbers are concerning, particularly among men who are neither working nor receiving unemployment.“It’s a worry because if you look at the unemployment rate, that’s very low. If you look at the people who are working, actual working, their number has gone down. The opposite of that number is that there used to be 163.3 million people working a year ago. Now we’re down to 162.7,” he said on Fox News.“The one thing to worry about is skill mismatch,” Mr. El-Erian added.

Record 105.8 Million Americans Now ‘Not In the Labor Force’

Record 105.8 Million Americans Now ‘Not In the Labor Force’

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