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Workers keep leaving the US labor force. Experts can't agree why
Economists cite retirements, caregiving and job mismatches as the labor pool falls, with some experts saying long-term disconnection from work is growing.
The U.S. labor force is shrinking as participation rates decline, with workers leaving the market entirely due to discouragement or caregiving responsibilities.
A booming stock market has enabled older Americans to retire early, with Bill Adams, chief economist at Comerica Bank, noting that those with savings feel comfortable stepping away.
Return-to-Office mandates are disproportionately driving women from the workforce, according to Michelle Evermore, senior fellow at the National Employment Law Project, who cited high caregiving costs as a barrier.
Glassdoor chief economist Daniel Zhao argues some workers leave for the 'wrong reasons,' including persistent discouragement after prolonged unemployment periods, suggesting the market struggles to retain talent.
A sustained decline in the U.S. labor force could ultimately slow economic growth as companies face worker shortages when available labor fails to meet hiring expectations.