The number of Americans not in the labor force has surged to a record 105.8 million** — surpassing levels seen during the Great Recession and the peak of the COVID-19 pandemic.
According to data from the Federal Reserve Bank of St. Louis, the figure hit an all-time high in June, driven by a sharp increase of 832,000 people dropping out of the labor force in that month alone.
What "Not in the Labor Force" Means
The category includes all Americans aged 16 and older who are neither working nor actively looking for work. This broad group encompasses retirees, students, people on disability, discouraged workers, and others.
While the raw number is at a record high, the **labor force participation rate** stood at 59% in June — the lowest level since September 2021 and comparable to post-Great Recession lows.
Breakdown of the 105.8 Million
- **Retirees** make up the largest share, around 50% of the total, largely due to the aging Baby Boomer generation. About 45% retired at or after age 65, with 3–5% retiring early.
- **Long-term illness, disability, or benefits recipients**: Up to 22%, or more than **23.3 million** Americans — a higher share than those in full-time education (16–18%, or ~19 million).
- **Discouraged workers**: About 5.3 million (5% of NILFs) who have stopped looking for work.
The Prime-Age Dropout Problem
Labor economist **Nicholas Eberstadt** of the American Enterprise Institute highlighted a concerning trend among working-age adults, especially men:
> “We’ve got a big problem…with the flight from work of prime-age men. And what’s been carrying the overall prime-age labor force participation has been the strong involvement of women, not men.”
Eberstadt estimates roughly **7 million** men aged 25–54 are out of the labor force, along with about **3.5 million** women in similar circumstances — often without children at home or a spouse present.
These “dropouts” — otherwise healthy individuals who simply opt out — are a growing factor, beyond what demographics alone would explain.
Why Is This Happening in America?
Eberstadt notes that other aging societies like Europe and Japan have actually seen **rising** workforce participation rates. He attributes part of the U.S. issue to a fragmented disability benefits system that lacks clear oversight:
> “The extent and the sprawl of participation or dependence upon different disability programs is a blind spot.”
On Universal Basic Income (UBI)
With AI raising fears of job displacement, some have proposed UBI. Eberstadt strongly opposes it, arguing it would exacerbate dropout behavior. He points to data on how many non-working men spend their time (often 2,000+ hours a year in front of screens) and warns it could contribute to “deaths of despair.”
> “I would not like to see a guaranteed income, a UBI… That’s a great warm-up act for becoming a statistic in deaths of despair.”
This record number of Americans outside the labor force underscores deeper structural challenges in workforce engagement, even as the economy continues to add jobs. The trend raises important questions about long-term economic vitality and social well-being.