The count of Americans sitting outside the workforce climbed to a new extreme in June, reaching 105.8 million after rising by 832,000, according to data shared by The Kobeissi Letter citing the Federal Reserve Bank of St.
Louis.
That retreat happened as employers adding 57,000 jobs in June missed the 110,000 forecast and coincided with a drop in the participation rate to 61.5%.
The June total sits 2.2 million above the prior high set during the 2020 shutdown period, and 2.5 million people have left the labor force so far in 2026.
That shift matters for the same reason the weak payroll print does: fewer people working or looking for work can change how investors read the economy’s momentum and the path for interest rates.
