A shortage of young men in the workforce could weigh on housing, Social Security, and growth for years to come
Experts warn that a long-standing trend of men dropping out of the workforce is dragging on the economy, and it could take years to reverse. This issue is particularly concerning because men have been leaving the labor force for decades.
Carol Graham, a senior fellow in economic studies at the Brookings Institution, notes that the labor force participation rate of prime working-age men (aged 25-54) has been steadily declining over the last 20 years. Currently, about 10% of men in this age group are neither employed nor actively seeking work. This figure is more than triple what it was in 1955, when just 3% of men were out of the workforce, according to Bureau of Labor Statistics data.
This translates to approximately 7 million men of prime working age who are not working, which has created significant challenges for the economy. Key industries remain understaffed, while government services and social safety nets are stretched thin, Graham and other experts told Business Insider.
"Some of these men drop out of college and find themselves lost, lacking purpose or direction in life," Graham said. "They are often unmarried, living in their parents' basements, feeling lonely and isolated."
This situation can have generational consequences, Graham added, as men who leave the workforce tend to have lower incomes and face higher rates of mental and physical health problems, which can hinder their children’s ability to build wealth.
Zack Mabel, a research professor at Georgetown University, suggests that declining labor force participation among young men could negatively affect the economy for decades to come. "It’s a trend that has persisted over multiple decades, showing little sign of improvement, and could have serious long-term consequences," he said.