Why 456,000 Job Seekers Are Discouraged

Discouraged workers are those who want—and are available—to work but have dropped out of the labor force because they believe there aren't any jobs for them. In April 2022, there were 456,000 workers categorized as discouraged, a slight increase from the 373,000 reported in March 2022. These figures are seasonally adjusted.

While these people have looked for work within the past year, they are not officially classified as unemployed because have not looked in the past four weeks. However, discouraged workers would take a job if it were offered.

Discouraged workers are not those who have dropped out of the labor force for reasons classified as "other." They might have gone back to school to increase their chances of getting work. Some leave the workforce because they've gotten pregnant. Others can't work because they've become disabled. Although they may also feel discouraged, they aren't counted as discouraged workers.

Four Reasons Why Discouraged Workers Give Up

There are several reasons discouraged workers give up looking for work. Here are a few:

• They might have been unemployed for so long that their knowledge, skills, and abilities have become outdated.
• They might not have the schooling or training needed to get the job they want.
• They might feel that there is a preference for younger workers in the available jobs.
• Some might believe they've been discriminated against because of their gender or race.

How Discouraged Workers Affect the Labor Force Participation Rate

Discouraged workers can reduce the labor force participation rate (LFPR) if unemployment is serious enough. At the beginning of a recession, the number of discouraged workers increases as the participation rate decreases. After looking for six months or more, many stop looking and drop out of the labor force. At that point, both the participation rate and the number of discouraged workers drop.

When the economy improves, discouraged workers return to the labor force. They may have the hardest time finding a new job, so their number could increase for a while. Eventually, the participation rate should increase and then stabilize as the number of discouraged workers drops. 

History

In the 21st century, the LFPR fell from its peak of 67.3% in April 2000 to 65.8% in 2005. It rose to 66.4% in January 2007, then fell to a new low of 62.4% in September 2015. In April 2020, the LFPR dropped to 60.2% because of the COVID-19 pandemic. The large drop is due in part to discouraged workers, as shown in this chart.

Date	LFPR	Change	Discouraged Workers	Change	Comments
April 2000	67.3%	Increase	327,000	Decrease	Labor force healthy at the end of the 1990s.
January 2005	65.8%	Decrease	491,000	Increase	Effects of recession.
January 2007	66.4%	Increase	421,000	Decrease	Labor force returned to health.
December 2010	64.3%	Decrease	1,301,000	Record high	Effects of recession.
February 2012	63.8%	Decrease	983,000	Decrease	Workers left the labor force. Many were too discouraged. Others went to school or retired. Some were forced to quit due to illness.
January 2014	62.9%	Decrease	803,000	Decrease	Workers left the labor force.
January 2015	62.9%	Equal	666,000	Decrease	Workers left the labor force.
January 2016	62.7%	Decrease	606,000	Decrease	Workers left the labor force.
January 2017	62.8%	Increase	515,000	Decrease	People returned to labor force as the number of discouraged workers dropped.
January 2018	62.7%	Decrease	435,000	Decrease	People returned to labor force.
January 2019	63.1%	Increase	411,000	Decrease	People returned to labor force.
January 2020	63.4%	Increase	335,000	Decrease	People returned to labor force.
January 2021	61.4%	Decrease	624,000	Increase	Effects of the COVID-19 pandemic.
January 2022	62.2%	Increase	408,000	Decrease	Effects of the COVID-19 pandemic; many unemployed ceased looking for work.

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