Record 105.8 million Americans out of the labor force in June

Data from the US Federal Reserve showed that the number of Americans outside the labor force reached a record 105.8 million in June, surpassing figures from the Great Recession and the COVID-19 pandemic.

Labor economist Nicholas Eberstadt noted a worrying trend of Americans, particularly working-age men, withdrawing from the workforce, while rising participation rates have been driven by women.

Eberstadt pointed out that 5.3 million workers have left the labor market due to discouragement, and about 22 percent of nonparticipants—over 23.3 million people—rely on sickness or disability benefits.

Retirees account for half of those not in the labor force, but the phenomenon of healthy individuals leaving work is growing. An estimated 7 million men aged 25 to 54 have exited employment, along with 3.5 million women in similar circumstances.

Unique phenomenon and its implications

Eberstadt added that this trend is unique to the United States, as Europe and Japan do not experience similar rates despite their aging populations.

The economist attributed the worsening situation to the complexity of US disability programs, which allow people to leave the workforce without real accountability.

Eberstadt warned against calls for a universal basic income, arguing it could deepen the crisis. He cited the example of nonworking men spending long hours in front of screens without community engagement, making them more vulnerable to despair.