Long-term unemployment fell to about 1.8 million people in July, but economists warn the drop stems from disillusioned workers leaving the labor force rather than finding jobs.
Amid a challenging job market with high competition and persistent long-term unemployment, many job seekers like Dan Coda are becoming discouraged and giving up their search. Economists note a worrying downward trend in the US labor force participation rate, exacerbated by layoffs, mental health stressors, and the difficulty of securing flexible work or visa sponsorships.
US labor force dropouts hit a record 105.8 million in June under President Trump, surpassing Great Recession and COVID-19 peaks. This includes 832,000 who left last month, with economists noting a "flight from work" among prime-age men and a growing group of women.
South Korea's labor force participation rate for 15-29 year olds dropped to 47.2% in May, a 2.3 percentage point decrease from last year, reflecting increasing job-finding difficulties and a rise in youth unemployment to 7.2%.
The US unemployment rate dropped to 4.2% in June, its lowest in a year. However, this decline is attributed to a significant exodus of workers from the labor force, with participation falling to its lowest point since March 2021, raising concerns among economists.
US employers added 57,000 jobs in June, half of economists' predictions, while past figures were revised down. The unemployment rate fell to 4.2%, but 720,000 people left the labor force. Inflation, influenced by the Middle East war, remains a key concern for the Federal Reserve.
India's labor market is shifting from agriculture to non-farm jobs, yet agriculture remains a significant employer. While overall labor force participation is steady, stark gender, caste, and geographic inequalities persist, impacting access to stable, better-paying work. Informality continues to dominate, with a substantial portion of casual workers earning below minimum wages.
