WASHINGTON— The unemployment rate has been on a slow downward trajectory since the recession ended nearly five years ago. While the overall jobless level has dropped to non-recession levels, the number of the working-age people with jobs is barely over 6 in 10, hovering at a level reminiscent of the late 1970s.
In May, the U.S. workforce-participation rate — the combination of those with jobs and unemployed workers actively seeking them — was just 62.8 percent, the same as the month before. Job markets have been essentially flat since October.
Where have all the missing workers gone?
Baby Boomers born roughly in the post-World War II period from 1946 to 1964 are now at or fast approaching retirement age.
Another reason is that some industries that suffered the most during the Great Recession, especially in manufacturing and construction, have yet to fully rebound.
But perhaps the most significant factor is unemployed workers “who just drop out of the job market after one, two or three years of looking for work and not being successful,” said Carl Van Horn, a professor of public policy at Rutgers University.
Recent surveys suggest more and more long-time unemployed workers leaving the nation’s workforce.
“And they are disproportionately older workers,” Van Horn said. “We have a large number of older (unemployed) workers who are not old enough to retire, yet they are facing discrimination in the workplace and have found it nearly impossible to get another job.”
Van Horn suggests: “As the economy gets stronger, as it continues to grow, eventually some of those discouraged workers will come back into the labor market, and we’ll have a higher labor-participation rate.” But that hasn’t happened — yet.
“We know that the reason unemployment is so high right now is pretty simple: employers haven’t seen demand for their stuff pick up in a way that would require them to bring on more workers, put that factory back on line, get more people to work,” said Heidi Shierholz, chief economist for the Economic Policy Institute, a labor-oriented Washington think-tank.
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We have a large number of older (unemployed) workers who are not old enough to retire, yet they are facing discrimination in the workplace and have found it nearly impossible to get another job.”
Carl Van Horn,
A professor of public policy at Rutgers University