The Decline of the Male Employment Rate

Over the past few decades, there has been a significant drop in the number of men participating in the labor force in both the United States and the United Kingdom. In the US, the male labor force participation rate decreased from about 80% in the 1970s to roughly 69% by 2020. Similarly, the UK has seen a decline, influenced by changes in industry, differences in educational achievements and health issues.

These trends highlight broader economic and societal shifts, such as the move from manufacturing to service-oriented economies, increased focus on education, and growing public health concerns due to poor diet and a lack of exercise—all of which have impacted men’s involvement in the workforce.

United States

The US male labor force participation rate has been declining steadily over the last 50 years. Economists have been researching this downward trend in order to understand the various contributing factors and how this decline will impact the future of the labor market.

As 73 million Baby Boomers reach retirement age, their exit from the workforce is making a significant impact on participation numbers. This generation is well established and has supported their children financially for a longer period of time when compared to previous generations. Currently, 19.7% of men between the ages of 25-34 are currently living with their parents, resulting in less financial responsibility and lowering their motivation to achieve higher wages. This financial dependency is also delaying family formation and further contributing to future workforce scarcity.

Another factor contributing to the declining male employment rate is the “NEETs" population, or “Not in Employment, Education or Training,” which in 2023 was 13% of 15- to 24-year-olds globally, a 15-year low. The younger generation is feeling left behind as the job market is demanding experience they don’t possess, and organizations continue to offer non-competitive wages. Additionally, men have historically dominated STEM professions; however, the growing female participation in STEM has increased competition in this space across industries and is making it more difficult for young men to gain employment.

A Major Gap in Skilled Trade Workers

Labor force participation has been more prevalent among those men who hold a bachelor’s or advanced degree. However, more than 40% of skilled trade workers are now over the age of 45, leaving a major gap that is expected to worsen in the coming years.

As the younger population graduates from high school and continues to seek higher education, there are less men who are willing to work skilled trade and manufacturing roles right out of high school. And while a skilled trade position can be a very rewarding career with strong earning potential right out of school, many young men desire or have been pressured into attending a college or university, leading them to choose the path of a bachelor’s degree.

Unfortunately, four-year technical degree programs are also being overlooked even though a large percentage of men prefer this type of hands-on labor. These programs include construction management, automotive technology, electrical technology, manufacturing technology and wood product manufacturing.

Other Factors Contributing to the Decline

Economists have discovered other reasons contributing to the falling male labor force participation rate (LFPR), including health conditions, disability and drug usage. Men are typically 2-3 times more vulnerable to drug overdose from opioids, such as fentanyl and heroin, and this drug usage often leads to incarceration. Over 1 million US men in their 20s and 30s are currently imprisoned. And while many of these imprisoned men could be working if they were not serving time, their environment and resources may not allow them to enter the workforce as easily as one may think. This exposes an even greater problem as many young men are lacking the drive and access to resources to join the workforce.

The overall decline of the male labor force participation rate has left significant gaps in essential roles, particularly in skilled trades, and will negatively impact the labor market in several ways.

With a smaller percentage of the population employed and actively seeking work, there will be fewer people contributing to the economy which will have long-term negative impact on US GDP and tax rates, and will weaken the ability to recover from market disruptions.

To address this, organizations should encourage high schools to enhance their curriculum and implement training and development programs that better prepare students for the workforce. Companies should also adopt skills-based hiring practices and partner with trade schools and colleges that offer apprenticeships for the skills they seek in order to build strong pipelines of future talent. These strategies can help engage this untapped population of men and help to fill critical positions.

United Kingdom

In the UK, male labor force participation has gradually declined over the last decade, particularly among men aged 50 and above. According to recent data from the Office for National Statistics (ONS) the male employment rate stands at 77.3% in 2024, slightly below pre-pandemic levels, with economic inactivity rising due to factors like early retirement and long-term illness.

The gap between male and female LFPR has been steadily narrowing. Over the past 5-10 years, while male LFPR has dipped slightly, female LFPR has steadily increased. There are some positive reasons for the LFPR increase among women, such as an increase in female graduates, enhanced maternity benefits and flexible working policies. There are also higher instances of men becoming economically inactive due to long-term illness than women, and more men choosing to retire early while women continue to engage in the workforce.

Both an increase in the value placed on women in the workforce and an increase in the state pension age for women have likely contributed to the rising female LFPR. There has also been a gender divergence in LFPR amongst the youth. Similar to the US, according to the ONS, the number of young men classified as not in education, employment or training is rising, while levels have remained stable for young women.

LFPR trends in Mainland Europe are underpinned by demographic shifts, immigration policy and the response to flexible working. The gap between male and female LFPR is closing more rapidly in high-income countries, but continues to widen in emerging economies (Northern and Western European countries have high male participation rates, reaching above 80%, whilst Southern and Eastern European countries such as Italy and Greece see lower rates closer to 70%.

Rising Long-Term Sickness

The rise in long-term sickness in the UK workforce has been a growing concern over the last four years. With approximately 2.8 million workers economically inactive due to long term sickness, the UK is now being dubbed the “sick man of Europe.”

A recent report by the IPPR Commission on Health and Prosperity sheds light on the underlying factors contributing to the issue. The top causes of long-term sickness were stress (26%), mental health (16%) and musculoskeletal conditions (13%). The number of employees reporting work-related sickness has also increased from 0.5% in 2019 to 1.5% in 2023, which highlights the key role that businesses can play to prevent workers from falling into this category.

The report highlights the strong link between workplace conditions and mental health issues, with poor work quality posing the highest risk to mental health. Addressing mental health in the workforce is a key priority to preventing further deterioration in LFPR amongst men. Organizations can enhance employee wellbeing by creating meaningful work and providing greater autonomy and flexibility, resulting in a more resilient workforce.