Summary
This Issue Brief examines the U.S. civilian labor force through December 2023, using data from the U.S. Census Bureau’s Current Population Survey, available through the Bureau of Labor Statistics. First, it explores the trends in labor force participation (LFP) rates of those ages 16 or older. Along with the labor force participation rates, the age and gender composition of the labor force and the adult population are investigated, allowing for the identification of key labor force and population trends. Finally, there is an analysis of how the labor force and employment changed from 2000–2023 for individuals of various races and ethnicities. Key findings include:
- Beginning around 2008, the U.S. population ages 16 or older became increasingly composed of those ages 65 or older — by 2023, this age category made up the largest share of the population. Americans ages 16–24 made up the smallest proportion of the population, while those ages 45–54 made up the second smallest share. Conversely, those ages 65 or older made up the lowest proportion of the labor force, though their share increased from 2000–2019.
- When analyzing the U.S. population ages 16 or older by age and gender, females ages 65 or older made up the largest proportion by a sizable margin. However, males of the same ages tended to make up a comparatively larger share of the labor force than females, with the labor force gaps being smallest among the youngest and oldest age ranges.
- The share of the labor force that is prime working ages (ages 25–64) has significantly fallen since the mid-1990s, despite the labor force participation rates of individuals these ages remaining near their mid-1990s levels. The decrease is being driven by the smaller number of people these ages, meaning that younger and older Americans are needed to cover this decrease. So far, the older population has been filling the gap in the labor force, as those younger than age 25 are at near record-low levels for their share of the labor force.
- The labor force participation rates of those ages 16 or older were overall relatively constant from 1975–2023. However, participation rates rose for females and fell for males, though both genders had lower participation rates in 2023 than in 2008.
- Labor force participation rates of White Americans ages 16 and older declined overall during the 21st century; LFP rates for Black and Hispanic Americans were also lower in 2023 than in 2000, though this decrease was less pronounced. In particular, LFP rates for Black and Hispanic Americans increased sharply from 2021–2023 after falling in 2020.
The age of the labor force will play an important role in companies’ work force development. At present, the aging of the Baby Boom generation has resulted in an increased share of older individuals in the labor force. However, members of this generation are almost all at least in their 60s, and the next generation (Gen X) is much smaller, so a decrease in the share of workers ages 55 or older is likely to follow. Working longer not only has implications for companies, but also for the individuals themselves, as working into older ages can lead to the accumulation of more assets, less need to deplete assets already accumulated, and a delay in claiming Social Security benefits. However, post-pandemic labor force participation rates of those ages 65 or older have not recovered to their pre-2019 levels, and as a result, many individuals are not likely to be working at older and older ages.