Story perspectives

720,000 Exit Workforce, Participation Hits 5-Decade Low

7/10/2026

Summary

Story summary

U.S. Labor Department said 720,000 workers left the labor force in June, lowering participation to 61.5%, a five-decade low.
The unemployment rate fell from 4.3% to 4.2% in June as roughly 1 million workers exited the workforce.
Glassdoor chief economist Daniel Zhao said the unemployment decline reflects fewer job seekers.
Comerica Bank chief U.S. economist Bill Adams warned slower labor-force growth could curb expansion despite solid productivity.

History

Historical Context

In 1975, the United States saw labor-force participation tumble to 62.5%, the lowest level since the post-World II era, amid a deep recession. The Bureau of Labor Statistics reported 4.2 million workers exiting jobs, while President Gerald Ford’s administration cited soaring oil prices and a 9% rise in unemployment. The June 2024 decline to 61.5% participation mirrors the 1975 contraction, as economists Daniel Zhao (Glassdoor) and Bill Adams (Comerica) note similar withdrawals. That historic slump prompted policy shifts, including the 1978 Employment Act, suggesting current policymakers may consider renewed job-creation incentives to reverse participation erosion.

1 of 2

Story summary

U.S. Labor Department said 720,000 workers left the labor force in June, lowering participation to 61.5%, a five-decade low.
The unemployment rate fell from 4.3% to 4.2% in June as roughly 1 million workers exited the workforce.
Glassdoor chief economist Daniel Zhao said the unemployment decline reflects fewer job seekers.
Comerica Bank chief U.S. economist Bill Adams warned slower labor-force growth could curb expansion despite solid productivity.

1 / 2