This whole meme about lazy workers quitting their jobs is hocus pocus. First, about the LFPR, 20-24 is not the prime working age, that occurs between 25-55. There are a number of reasons this cohort may not be in the labor force, such as education. Second, the BLS points out that the LFPR has declined, but within each age cohort it has actually increased between 2010 and 2019. This is because of the aging of the population, the retirement of millions of baby boomers. And it must be noted that the LFPR, after many years of decline, was actually increasing for the last 5 years before Covid hit.

Third, the LFPR is a problematic measure of the employment situation, combining those not wanting to work with those who voluntarily say on a form that they want to work but can't. A better measure is the simple employment/population ratio, the number of people employed divided by the number eligible to be employed. That number hit a peak at 63% in 2007 before the Bush financial crash, then declined rapidly for a few years, but began climbing back up after 2010, peaking at about 61% just before Covid hit. Then it dropped dramatically because of Covid, but has been rising back up rapidly and is now almost back to its pre-Covid peak at 59.7%.

So the prevailing meme that people are quitting their jobs at an historic rate is hyperbolic. There has been an adjustment because of Covid, but the job market is recovering rapidly. In economics we say that there is not a labor shortage, but there is a shortage of labor at the prevailing wage. Yes, there is a shifting of priorities, and many people are waiting to re-engage, or are quitting, but not because they don't want to work. It is because they are looking for jobs that are a better fit with their skills, talents, and goals - what we call transitional unemployment. This is a good thing, and will result in a more efficient workforce in the long run.