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Study: Labor Force Participation Has Declined Across the Country
In Virtually Every State Working-age Americans Have Left Labor Force
Washington D.C. (September 1, 2023) -- The findings of a new analysis by the Center for Immigration Studies shows that the labor force participation rate — the share working or looking for work — of U.S.-born men has declined for six decades in nearly every state, especially for men without a bachelor’s degree. While participation has roughly returned to pre-pandemic levels in most states, the rate in 2019, before Covid, was extremely low by historic standards. Because they are not actively looking for a job, those out of the labor force are not counted as unemployed. The causes for the fall-off are much-debated. But, there is agreement that the decline contributes to serious social problems, including suicide, crime, drug overdoses, and welfare dependency.
 
“Drawing some of the millions of working-age Americans on the economic sidelines back into jobs should be a national priority, said the report’s lead author and Center’s Director of Research Steven Camarota, “Yet, many political leaders, including in states where the decline is very large, instead advocate bringing in more immigrant workers.”
 
Among the findings:
  • In every state, the labor force participation rate of working-age (16 to 64) U.S.-born men was lower in 2000 than in 1960. In 49 states, except Kansas, the rate declined further from 2000 to 2023.
  • The largest declines from 1960 to 2000 were in New York, Alaska, Hawaii, California, New Mexico, Louisiana, Nevada, and Ohio. The biggest declines since 2000 have been in Connecticut, New Mexico, North Carolina, Florida, South Carolina, Georgia, and Massachusetts.
  • Looking only at “prime age” (25 to 54) U.S.-born men, shows a decline in participation in every state from 1960 to 2000 and a further decline in 42 states from 2000 to 2023.
  • In 1960, there were 37 states where more than 95 percent of prime-age, U.S.-born men were in the labor force, compared to just one state, Minnesota, in 2023.
  • While traditionally lower than men, the participation rate for U.S.-born women (16 to 64) increased dramatically from 1960 to 2000 as women entered the labor force in huge numbers, but since 2000 the rate for women has fallen somewhat nationally and in most states.
  • The decline in labor force participation of working-age, U.S.-born men is most pronounced among men without a bachelor’s, declining in every state from 1960 to 2000 and from 2000 to 2023.
  • Like their less-educated male counterparts, the participation rate of working-age (16 to 64) U.S.-born women without a bachelor’s has declined nationally since 2000 and in all but one state
  • In general, working-age immigrant men and women do not show a pattern of consistent decline. However, immigrant men (16 to 64) without a bachelor’s do show some decline nationally and in 29 states since the peak in 2006, before the Great Recession.
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