The decrease in LFPR has been decreasing for awhile now. It's no suprise. Boomers are nearing retirement age and it's been something discussed for a long time.Well, not quite. The dynamic of the early 80's was a rapidly increasing LFPR, so the gap takes on a bit of a different perspective. While it was well below the mean, the participation rate was going UP then.
The difference then to now is stark, primarily in that we have diverging slopes. One says its getting better, while the other says it is getting worse. It is not only a flaw in the formula used, but more importantly, it is a number, LFPR, generated by government. Unlike the number of employed, which is essentially generated by payrolls, most of them private, there is no entity other than government which decides the LFPR ..... "Poof" .. here it is !
Notice: Data not available: U.S. Bureau of Labor Statistics
Those that are are nearing retirement age are making the decision to get out of a bad labor market. It's just accelerating long term trends.