A new working paper from the Federal Reserve Bank of San Francisco examines the factors behind the decades-long decline in labor force participation rates among prime-age men. The study, titled "Pulled Out or Pushed Out? Declining Male Labor Force Participation," analyzes data across four generations to understand why fewer men aged 25 to 54 are participating in the workforce.

The authors, Leila Bengali, Mary C. Daly, Evgeniya Duzhak, and Cindy Zhou, found that younger Millennials are spending more time in continuing education compared to earlier generations. This trend accounts for a significant part of the nonparticipation gap observed among this group. The research also highlights that skills mismatch and increased family caretaking responsibilities have contributed to lower participation rates at all ages.

The Federal Reserve Bank of San Francisco is responsible for advancing the nation’s monetary, financial, and payment systems as part of its mission to build a stronger economy. It serves the Twelfth Federal Reserve District, which includes nine western states and several U.S. territories. The institution pursues maximum employment and price stability as part of its dual mandate to support an inclusive economy.