Draw that graph back further before 2006 and you'll see that labor participation was lower from 1948-1984, almost 40 years. It appears to have peaked between 1

Draw that graph back further before 2006 and you'll see that labor participation was lower from 1948-1984, almost 40 years. It appears to have peaked between 1990 and 2008, but even today it's not quite as low as it was during a time of pretty solid prosperity (50s and 60s). Even today's rate is only 3% or so lower than the 2006 rate, so if you add it to the unemployment rate it's still not very bad. Just another perspective on this as it seems to be something that comes up over and over in these discussions.