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US labor force participation continues to slide

restaurant.org

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Re: US labor force participation continues to slide

#4
Question, are these stats based on the most recent census data for population and then reported employment numbers? If so changes in population (considerable deportations for example) might effect an assumed denominator that no longer holds. That said if the labor numbers rely on above board work, then perhaps that would not impact the numerator as much either. The methodology is important here.

Re: US labor force participation continues to slide

#8

Question, are these stats based on the most recent census data for population and then reported employment numbers? If so changes in population (considerable deportations for example) might effect an assumed denominator that no longer holds. That said if the labor numbers rely on above board work, then perhaps that would not impact the numerator as much either. The methodology is important here.

Submitter here, I posted because I think there is a confluence of interesting macroeconomic factors at work here. Certainly, immigration policy is factoring into this, as the restaurant industry is highly dependent on such labor. At the same time, we're still seeing 55+ leave the labor force rapidly (~4M Boomers continue to retire per year, ~330k/month), leaving only younger prime working age cohort, which continues to shrink. At the same time, we're seeing youth unemployment around 6%, including those with a college degree [1].

As the piece mentions, young men are "staying on the sidelines" versus engage in low wage, low status restaurant work (in this context). So, who can hold out longer: businesses and industries historically underpaying workers but "desperate for them"? Or potential workers? Because as long as US immigration is constrained, as a business, you get to pick from who is on the soil at whatever that market clearing price for labor is.

[1] Young men are struggling in a slowing job market, even if they have college degrees - https://www.nbcnews.com/business/economy/young-men-strugglin... - August 13th, 2025 ("Men ages 23 to 30 are discovering that a bachelor's degree doesn't offer the same protection from unemployment that it used to")

Re: US labor force participation continues to slide

#10

Question, are these stats based on the most recent census data for population and then reported employment numbers? If so changes in population (considerable deportations for example) might effect an assumed denominator that no longer holds. That said if the labor numbers rely on above board work, then perhaps that would not impact the numerator as much either. The methodology is important here.

Submitter here, I posted because I think there is a confluence of interesting macroeconomic factors at work here. Certainly, immigration policy is factoring into this, as the restaurant industry is highly dependent on such labor. At the same time, we're still seeing 55+ leave the labor force rapidly (~4M Boomers continue to retire per year, ~330k/month), leaving only younger prime working age cohort, which continues…

leaving only younger prime working age cohort, which continues to shrink

I don't think that's literally true? There are more Millennials (~22% of US population) now than Boomers (~20%) or Gen X (~19%). Same for Gen Z (~21%).

Or do you mean that for whatever reason, Millenials aren't participating in the work force?

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