Employed workers leaving the labor force: an analysis of recent trends

This article looks at the large increase in the number of people who moved from employed to not in the labor force during the 2013-14 to 2015-16 period, both overall and for workers ages 25-54. Although some of this increase can be attributed to the business cycle, there has been a greater flow from employment to retirement or to schooling than at the peak of the previous business cycle. Demographic changes explain relatively little of the increase, especially for the 25-54 age group. This movement may reflect long-term changes in the labor market.