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Labor Force Participation Among U.S. Men Declining

A growing number of men in the United States who are in initial and prime working years or at least the age of 20 are neither working nor looking for work. This trend has been reported and visualized by the U.S. Bureau of Labor Statistics. Note that the initial working years start at the age of 20 while prime working years are between 25 to 54.

More Adult Men in the United States are Neither Working nor Looking for Work

Labor Market Data

Data from the Bureau of Labor Statistics show that labor participation rate among U.S. men at least 20 years of age in 2004 was 75.6 percent. The rate remain around 75 percent until 2008. A downward trend started to become more noticeable beginning in 2009 when the rate went below 75 percent and further plummeted to around 73 percent beginning in October 2010.

The labor participation rate of men within the large age grouping remained in the 71 percent territory between 2015 and 2020. However, following the coronavirus pandemic, the rate went down to around 70 percent beginning in 2021 and to 2024. This same downward trend in labor participation has been observed across different ethnic demographic categories.

Further data from the Bureau of Labor Statistics revealed that about 10.5 percent of men in their prime working years or within the 25-54 age group were neither working nor looking for work in August 2024. There is an overall decline in prime-age labor participation and data show that this is largely driven by men. Prime-aged men will further drive this decline through 2033.

The growing number of U.S. men who are not interested to participate in the labor market is worth revaluating. 10.5 percent of men represents 6.8 million adult men aged 25-54 who are neither working nor interested to work. This is a considerable number considering that the rate was only at 2.5 percent in 1954. This group is expected to contribute to reduced labor participation.

Observed Explanations

The economic letter of Robert G. Valetta and Nathaniel Barlow of the Federal Reserve Bank of San Francisco and the working paper of Katherine G. Abraham and  Melissa S. Kearney that was published by the National Bureau of Economic Research noted that some of the decline in the 2000s has been attributed to the decline in manufacturing jobs and routine manual labor.

Note that decline in careers in the manufacturing sector is specifically attributed to increasing globalization that that fuels imports from China and the utilization of automation in the labor market. It is worth mentioning that the downward trend in the participation rate among prime-aged women was revered in 2016 due to the growth in several female-dominate service sectors.

Education is another reason. A  number of prime-age men face challenges related to obsolete skills, lack of education, or poor work history. Nearly 47 percent of men cite such barriers to employment according to a 2023 survey by the Bipartisan Policy Center and Artemis Strategy Group. This suggests displacement due to emerging trends in the American labor market.

Younger generations have higher rates of postsecondary education enrollment. This leas them to enter the workforce later. Approximately 14 percent of millennial males at age 25 are not in the labor force. Research by Leila Bengali and Cindy Zhao noted that younger men tend to have higher non-participation rates that decline until about age 30 and increase thereafter.

Implications and Pointers

The declining labor force participation among prime-working-age men in the U.S. has significant implications for individuals, families, and the broader economy. These include specific economic consequences like reduced economic growth due to shrinking labor force and higher dependency ratio due to a smaller base of workers supporting a larger non-working population.

Several social and individual consequences have also been assumed. Non-participation often leads to financial hardship. Extended periods out of the workforce can negatively affect mental and physical health. This can further result in issues like depression, substance abuse, and a loss of purpose. The decline in male labor force participation can alter traditional family roles.

It is also worth considering societal and behavioral factors. Higher rates of loneliness and lesser social connections among young men can lead to increased mental health issues and specific behavioral problems like increased substance abuse and self-imposed isolation. This can result in reduce interest or willingness to work and  participate in the labor force.

FURTHER READINGS AND REFERENCES

  • Abraham, K. and Kearney, M. 2018. “Explaining the Decline in the U.S. Employment-to-Population Ratio: A Review of the Evidence.” National Bureau of Economic Research. DOI: 3386/w24333
  • Bengali, L. and Zhao, C. 2023. “Men’s Falling Labor Force Participation across Generations.” FRSB Economic Letter. Available online
  • Dubina, K. 2024. “Labor Force and Macroeconomic Projections Overview and Highlights, 2023–33. In Monthly Labor Review. U.S. Bureau of Labor Statistics. DOI: 21916/mlr.2024.14
  • Gitis, B. and Wielk, E. 2023. Barriers to Work: A Recent BPC-Artemis Survey of Non-working Americans and the Need for Paid Family and Medical Leave. Bipartisan Policy Center. Available online
  • S. Bureau of Labor Statistics. n.d. “Civilian Labor Force Participation Rate.” Graphics for Economic News Releases. U.S. Bureau of Labor Statistics. Available online
  • Valetta, R. G. and Barlow, N. 2018. “The Prime-Age Workforce and Labor Market Polarization.” FRSB Economic Letter. Available online