Why Does U.S. Trail Others in Labor Force Participation? Shrinking Number of U.S. Workers Support Those Who Don’t Work

Labor force participation refers to the percentage of adults who are eligible to work and hold a job. In 2013, the U.S. rate for people 15-64 stood at 72.8%, down from its peak of 77.4% in 1997. Only France had a lower labor force participation rate than the U.S. in 2013. At first blush, the data suggest that employment laws are barriers to participation—the ACA, rising minimum wage in various states and cities, etc. Ditto income substitutes such as Social Security disability, early retirement, and so on. But European nations actually have more generous policies. I wonder how much race discrimination and large population of convicts in the U.S. plays into this. We differ from Europe there.Whatever the causes, the downward trend is disturbing: a shrinking percentage of people are supporting those who don’t work. See more here: http://blogs.wsj.com/economics/2015/06/26/the-u-s-stands-out-on-labor-force-participation-rates/