Older Workers Exit Labor Force as 55-Plus Participation Falls to 37.2%
Updated
Updated · CNBC · Sep 21
Older Workers Exit Labor Force as 55-Plus Participation Falls to 37.2%
3 articles · Updated · CNBC · Sep 21
Summary
37.2% of Americans age 55 and older were in the labor force in August, down from 38.6% a year earlier, extending a post-pandemic slide that economists say accelerated in summer 2024.
AI-driven stock gains are a key driver: the S&P 500 returned 26% in 2023, 25% in 2024 and 18% in 2025, lifting retirement accounts and making it easier for near-retirees to leave work.
$12.8 trillion in second-quarter household wealth growth — to $195.9 trillion — reinforced that “wealth effect,” while demographics and retirement packages at employers and federal agencies also pushed exits higher.
Those departures have helped keep unemployment relatively low at 4.1% by creating openings in an otherwise sluggish job market, but economists warn a market reversal could pull some retirees back and reduce hiring churn.