[proxy_user]

So, how many people should be in the labor force? What is the appropriate number of college and grad students, housewives, and early retirees?

[grania]

What you asked made me think about why I'm now a totally-retired retiree. It's a total equation....the work, reward and safety, the hours, the commute, the wages. I wonder if a lot of those slipping out of the job market are retirees who have decided that it's not worth it.

If interest on FDIC savings reaches even a somewhat reasonable percentage (say 3%?) I'd wager that a lot more older folk would leave the workforce and open jobs for younger workers. Just a guess, based on my experience and what I know of those whom I encounter.

[Steven Scharf]

“So, how many people should be in the labor force? What is the appropriate number of college and grad students, housewives, and early retirees?”

You present an interesting question.

If you go to the BLS data site and pull up the info going back to 1948 (I presume when they started to keep track of this info) it show a different chart than the one presented above. It fluctuates from 58% to 60% from 1948 to 1972 when it begins to slowly rise 66.8% at the beginning of 1990. It then floated in the 66% level until 2002 when it starts to come back down to 62.6% today.

http://data.bls.gov/pdq/SurveyOutputServlet

The reason the number seems so massive today is that there are 100 million more people in America than 1980.

Prior to 1972 it was not as common for women to be in the job market. Their movement into the job market increased the participation rate. It would be interesting to see the male vs female participation rate. Not sure if it is broken out. The data page does not appear to allow this.

[jwalsh07]

Depends. How many other people do you want to support?

[jwalsh07]

And BTW labor force participation rate among the oldest working age is increasing.