Labor Force Participation Rate Falls To Lowest In 50 years Published on 2026-07-02T21:05:00Z The US unemployment rate fell to 4.2% in June largely because 720,000 people left the labor force, pushing participation to 61.5%. Excluding the Covid-era jobs market, that's the lowest participation rate since June 1976. CNBC reports: The decline in the labor force marks a "massive exodus" driven by multiple factors, said Mike Reid, head of U.S. economics at RBC. "The unemployment rate fell to 4.2% as both the number of unemployed workers and the size of the labor force pulled back," Reid wrote in a post-report commentary. "This may well be a story of retirements but could also be a story of prior job seekers dropping out of the labor force." [...] [T]he rolls of those counted as not in the labor force, a group that includes the unemployed and those not looking for work, jumped by 832,000. And while the establishment survey, which counts jobs filled, showe...
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