Part of it might be transfer payments, part of it might be the wealth effect (stocks, house prices etc and everything bubble might have pushed people into retir

Part of it might be transfer payments, part of it might be the wealth effect (stocks, house prices etc and everything bubble might have pushed people into retirement earlier). Probably affects behavior on the margin and has people pull away from the work force (and I think the Federal Reserve might be starting to realize that). Also about half of the boomers have / are hitting retirement age and are retiring en masse, which will shrink the available labor supply quite drastically (especially since they were very productive workers in late career stage)