Young People Are Still Dropping Out Of The Labour Force

The August jobs report revealed that, once again,
labour force participation fell.
The rate dropped to 63.2% from 63.4% in July, the lowest figure since August 1978.

This chart via Bloomberg’s Michael McDonough breaks out labour force participation by age since 1990. Youth employment (ages 16-19) has seen the steepest decline, followed by ages 20-24.

Last month, the labour participation rate for those aged 16-19 fell to 34.0% from 34.9% in July.

Kids are likely staying in school for longer (or avoiding work altogether) thanks to a tough labour market. On the other hand, the 65-and-over crowd has seen the sharpest uptick in participation. The financial crisis bled retirement savings, forcing older Americans to stay on the job for longer.

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