US labor force participation hits 50-year low due to worker shortages

US labor force participation dropped to 61.5%, its lowest in 50 years outside the pandemic, driven by a worker supply shortage. Economists attribute this decline to demographic shifts like the aging Baby Boomer generation and immigration policy changes, rather than widespread discouragement. AI's impact is also a factor, creating a mismatch between available workers and job openings, particularly in sectors like information and finance.