Interestingly I can see a case where a drop in labor force participation is a positive thing, it depends on who is dropping out. I can see more senors retiring

Interestingly I can see a case where a drop in labor force participation is a positive thing, it depends on who is dropping out. I can see more senors retiring and more voluntary stay at home parents being an indication of more general financial security among the population. More people who can afford not to work. However if the drop is in people who want to or need to work that's obviously bad.