US Labor Force Non-Participation Hits Record 111 Million

The number of adults not in the labor force in the United States reached a record estimated 111 million in July 2026, according to data from the Federal Reserve Bank of St. Louis and government reports. This surge follows a June 2026 figure of 105.8 million, which surpassed peaks seen during the Great Recession and the COVID-19 pandemic. The labor force participation rate fell to 59% in June, the lowest level since September 2021.

This decline coincides with a slowing job market, where the economy added only 57,000 jobs in June, missing the expected 115,000. The Bureau of Labor Statistics reported an unemployment rate of 4.2% and wage growth of 3.5%, which only matched the inflation rate, resulting in no gain in purchasing power. The leisure and hospitality sector specifically lost 61,000 jobs.

While retirees are the largest segment of the non-working population, Nicholas Eberstadt and other researchers highlight a concerning flight from work among prime-age men and women. Eberstadt attributes this trend to a disconnected network of disability programs. Other data indicates 55% of non-workers rely on government transfer programs like Social Security. Critics of universal basic income argue such a policy would further disengage jobless men from civil society, especially as artificial intelligence continues to replace human roles.