Participation in the Labor Force

People who exit the labor force before qualifying for full Social Security benefits at age 65–66 (depending on birth year) do so for a variety of reasons including chronic health problems, loss of a job, and being eligible to collect Social Security benefits (retired worker, survivor, or spouse) beginning at age 62.

Chart 3. Labor force participation rates of people aged 55–64, by age group and sex, annual averages, 1984, 1994, and 2004

Source: Bureau of Labor Statistics, Current Population Survey.

• Between 1984 and 2004, the percentage of men aged 55–61 in the labor force remained relatively stable (77 percent to 74 percent, respectively).
• About three-quarters of men aged 55–61 are in the labor force compared to only about one-half of men aged 62–64.
• The labor force participation rates for men aged 62–64 increased from 45 percent in 1994 to 51 percent in 2004.
• The labor force participation rates for women both at ages 55–61 and 62–64 increased over the past two decades. Between 1984 and 2004 the labor force participation rates for women aged 55–61 have increased from 47 percent to 62 percent. For women aged 62–64, the rates have increased from 29 percent to 39 percent over the same period.