Why people are dropping out of the workforce and not looking for new jobs: 'The market wore me down'

Dan Coda's job search ended in disappointment after six months of searching. Laid off in December 2025, he spent over 300 hours applying for roles without success. The candidate pool was flooded due to mass layoffs, making it harder for Coda to find a job. June saw the largest drop in prime age labor force participation since 1976, with 720,000 people leaving the workforce.

This downward trend has been ongoing since the 2000s, driven by an aging population and fewer young people entering the workforce. As of June, 1.9 million Americans, or about 1 in 4 unemployed individuals, were jobless but still seeking employment for more than six months. The prolonged low-hire, low-fire job market could make it even more challenging for people to find work and push more individuals out of the labor force.

Factors contributing to the decline in labor force participation include an aging workforce, lower immigration, and mental wellbeing issues. Some individuals, like Coda, have taken a break from job hunting due to the negative impact on their mental health, while others, like Haina, have returned home to be with family. Falling labor force participation can have long-term implications, including stunting career trajectories, impacting retirement savings, and making it harder for candidates to find work due to resume gaps.