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IPFS News Link • Employment & Jobs

More Americans Leave the Workforce as Participation Rate Drops Again

• by Catarina Saraiva

The share of Americans either working or actively looking for a job fell to 62.1%, according to government data released Friday. The rate had risen to 62.4% in August, matching a post-pandemic high reached in March, but remains significantly below where it was before the pandemic. 

"We got no help from the participation rate, which continues to move in the wrong direction and will keep competition for labor high until the economy inevitably rolls over sometime next year," said Cliff Hodge, chief investment officer at Cornerstone Financial.

Concerns about Covid-19, trouble finding child care, early retirements and suppressed immigration have all contributed to a subdued workforce. 

The drop in participation is bad news for Federal Reserve officials, who have aggressively been rising interest rates this year as they try to tame inflation. They were hoping that cooling the economy would lure workers back to jobs. It hasn't happened yet.