AI Data Insight
In Q3 2026, the number of people not in the US labor force climbed to 106,189.0 thousand, an increase of 381,000 from the previous observation, hitting a record high. The cooling job market has caused a large number of 'discouraged workers' to give up their job search, which not only dragged the labor force participation rate to the bottom but also caused a false improvement in the unemployment rate, which dropped slightly due to labor force exits.