Why people are dropping out of the workforce and not looking for new jobs: 'The market wore me down'

📰 source: cnbc_topnews · 💼 business

dan coda, a 40-year-old from durham, north carolina, gave up his job search in june after being laid off in december 2025. he spent more than 300 hours applying, got responses from 15 potential roles, and went through multiple interviews without landing a job. 'the market wore me down,' he says. some, like coda, are dipping into savings; he and his wife planned for early retirement and can afford his sabbatical of up to a year.

january saw the highest announced layoffs since 2009, according to challenger. the labor force participation rate dropped in june by the most for prime-age workers (25-54) since 1976, with roughly 720,000 people stopping work or looking between may and june, per the st. louis fed. the majority of those leaving are ages 25 to 34, says heather long. long-term unemployment remains elevated, with 1.9 million people jobless for over six months. discouraged workers include haina, who left the us for inner mongolia after visa struggles, and celine wang, who went back to school for dental hygiene. economists point to retirements, lower immigration, and mental health strains as factors pushing people out.

why it matters: biggest one-month drop in prime-age labor force participation since 1976 signals a shrinking workforce, pressuring hiring and long-term growth.

source: cnbc_topnews
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