Labor Markets and Opportunity: Is Our Workforce Getting Smaller?
29 May ’25
President and CEO Patrick T. Harker, Economic Growth & Mobility Project Director Ashley Putnam, and Outreach Economist Ryo Tashiro explore the shrinking U.S. labor force.
Share
Across the United States, as the baby boomer generation retires, fewer workers are participating in the workforce. Why is this happening, and why does it matter?
Low labor force participation can have a big impact on the economy. “If we don’t have enough people with the right skills entering the labor force, then we don’t get the growth we want,” says Philadelphia Fed President and CEO Patrick T. Harker.
Congress gave the Fed a dual mandate — stable prices and maximum employment. That’s why we study economic data and speak directly to workers to understand what’s happening in the economy.