You may be right. But I 've yet to see any economic-research that supports the notion. (I've been through and through the BLS files.)
Research? It's the definitions found in the
BLS Glossary:
Civilian noninstitutional population (Current Population Survey)Included are persons 16 years of age and older residing in the 50 states and the District of Columbia who do not live in institutions (for example, correctional facilities, long-term care hospitals, and nursing homes) and who are not on active duty in the Armed Forces.
Labor force (Current Population Survey)The labor force includes all persons classified as employed or unemployed in accordance with the definitions contained in this glossary.
Employed persons (Current Population Survey)Persons 16 years and over in the civilian noninstitutional population who, during the reference week, (a) did any work at all (at least 1 hour) as paid employees; worked in their own business, profession, or on their own farm, or worked 15 hours or more as unpaid workers in an enterprise operated by a member of the family; and (b) all those who were not working but who had jobs or businesses from which they were temporarily absent because of vacation, illness, bad weather, childcare problems, maternity or paternity leave, labor-management dispute, job training, or other family or personal reasons, whether or not they were paid for the time off or were seeking other jobs. Each employed person is counted only once, even if he or she holds more than one job. Excluded are persons whose only activity consisted of work around their own house (painting, repairing, or own home housework) or volunteer work for religious, charitable, and other organizations.
Unemployed persons (Current Population Survey)Persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.
Not in the labor force (Current Population Survey)Includes persons aged 16 years and older in the civilian noninstitutional population who are neither employed nor unemployed in accordance with the definitions contained in this glossary. Information is collected on their desire for and availability for work, job search activity in the prior year, and reasons for not currently searching.
So....by definition...anyone in the civilian noninstitutional population who is neither working nor looking for work is Not in the Labor Force. They'll be in the denominator of the Labor Force Participation rate and the Employment-Population ratio, but not in either numerator. And of course not in the Unemployment calculation at all.
In increase in retirees causes a downward push on the labor force and the labor force participation rate.