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There's a chart on page 10: Identifying Factors behind the Decline in the U.S. Labor Force Participation Rate http://macrothink.org/journal/index.php/ber/arti

• YokoZar 12y ago
  As a brief summary, as of 2012 the decline in labor force participation rate was about 1/3 due to demographic shifts and 2/3 due to the business cycle. The paper notes it was expected to fall even further, however individual "behavior changes" caused it to not fall as far.
  • jaekwon 12y ago
    Most of it was due to "business cycle"? What does that mean?
    • 001sky 12y ago
      The recession triggered changes in organiztion structure accross a wide variety of areas. This led to re-negotiation or termination of previously existing employment contracts. When there is a market failure to re-negotiate such contracts on mutualy agreeable terms, the parties are no longer in an employee/employer relationship. The parties are not in the workforce. Whether they are declared "unemployed" or not is a bit of a shambolic side debate about window dressing.