Overall, labor force participation rates have been declining in the U.S. economy but not for every demographic. Let’s examine the labor force participation rates of teenagers and older people. Using the FRED economic database (https://fred.stlouisfed.org/), search for “Labor force participation rate 16 to 19 years.” Graph the seasonally adjusted rate since we are interested in long-term trends. Then click Edit Graph and Add Line and then search for and add “Labor Force Participation Rate: 55 years and over.”

a. Since the 1990s, whose labor force participation rate has increased and whose has decreased?

b. For the group whose labor force participation rate has increased, make two hypotheses or stories about why the trend is up. Try to make one hypothesis a good or positive story and one a bad or negative story. Do the same for the group whose labor force participation rate has declined.