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Women and aging affect trends in labor force growth
July 27, 2020
Labor force growth is an important component of economic growth. Two demographic shifts have affected the U.S. labor force: changes in women’s participation and the growth of older age groups.
Over much of the second half of the 20th century, women’s labor force participation increased dramatically. At the beginning of the 21st century, women’s participation declined; however, in recent years, it has flattened. BLS projects the women’s labor force participation rate to remain about the same in 2028, at 56.6 percent.
Labor force participation rate by select age group
Participation Rate
16-54
55-64
65+
1988
79.3%
54.6%
11.5%
1998
80.0
59.3
11.9
2008
77.5
64.5
16.8
2018
75.8
65.0
19.6
2028 Projected
75.0
67.9
23.3
The percentage of the population in older age groups is projected to increase. Since older people are less likely to be in the labor force, the overall labor force participation rate may likely decline, even though the labor participation rate for older workers (65 and older) is projected to increase.
United States Department of Labor
