Labor force participation hit its lowest level since 1979 in March, at 63.3%. The participation rate has fallen during the recession, from 66%, or about seven million workers. Economists say that the falling participation rate indicates a lack of confidence from workers that they will find a job, or that many workers will enter the labor market at once, sending the unemployment rate upwards. However, others say that the drop in participation rate can partly be explained by an aging workforce and younger workers who are taking longer to enter the workforce because of school. About 12 million people remain unemployed.
See "Real Culprit Behind Smaller Workforce: Age", Ben Casselman, The Wall Street Journal, April 28, 2013