Older Americans’ Labor Participation Falls to 36.9% as S&P 500 Rally Spurs Retirement Theory
Updated
Updated · USA TODAY · Sep 30
Older Americans’ Labor Participation Falls to 36.9% as S&P 500 Rally Spurs Retirement Theory
2 articles · Updated · USA TODAY · Sep 30
Summary
U.S. labor-force participation among people 55 and older fell to 36.9% in July 2026 from 39.2% in February 2022, extending a recent decline after decades of gains.
Bank of America economists linked the drop partly to a 35%+ S&P 500 rise over the past two years, arguing stronger 401(k) balances may be nudging more older workers into retirement.
Economists cautioned the pattern is not settled: aging baby boomers naturally pull down participation in the broad 55-plus group, while employment among 55-to-64-year-olds may not have fallen much.
Survey quality may also be muddying the picture, with lower Bureau of Labor Statistics response rates potentially skewing results toward workers more likely to answer.
The trend could reverse if markets weaken again; in 2022, falling stocks and bonds coincided with older Americans delaying retirement or returning to work.