Then the rate would drop....i.e. you have 18 out of 20 people with jobs (90%) and then 10 retire and go unfilled, now your participation rate is 80% (8 out of 10).jmog;1650439 wrote:That's true if the employer fills the vacancy with someone who is currently unemployed. If they just let the person retire and don't fill, then the rate doesn't change.
But obviously they calculate with estimates, adjusted for unemployment claims and maybe SS or 401k/IRA distributions. So for the most part, when those people retire even if only some are backfilled the participation rate should go up.
Regardless, if the current participation rate is 62% or so, over 60% of retiree positions would have to be eliminated to negatively affect the participation rate.