June 20, 2025

Is It Really That No One Wants to Work Anymore? The Truth Behind America’s Labor Crisis

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labor force participation

It’s a phrase you’ve probably heard or read online: “Nobody wants to work anymore.” But is that really true? Or are we misunderstanding a much deeper, more complex reality about America’s labor force in 2025?

Labor Force Participation Is Plummeting—Here’s Why

Despite low unemployment numbers, fewer Americans are actually participating in the workforce than in decades past. Participation is near generational lows, and it’s hitting both ends of the age spectrum:

  • Older workers are retiring early or leaving due to severance packages, burnout, or a shift in values post-pandemic.
  • Younger adults are staying in school longer, taking on fewer part-time jobs, and facing a tougher time finding employment after graduation.

These trends are reshaping the workforce—but not for the reasons you might think.

“Nobody Wants to Work Anymore” Is a Misdiagnosis

It’s easy to blame laziness. Wealthy business owners and executives often do. But the more accurate diagnosis is this: People don’t want to work in jobs that treat them poorly or pay them unfairly.

In fact, fewer than 20% of Americans say they feel engaged at work. The jobs that go unfilled often fall into one (or more) of these categories:

  • Underpaid
  • Toxic or abusive
  • Ghost jobs (positions that aren’t real to begin with)

Let’s break that down.

Underpaid Jobs + High Expectations = A Broken Market

Some companies are offering $50,000/year for senior developer roles—in Silicon Valley, no less. Others expect workers to accept minimum wage in cities where rent alone eats up more than half that paycheck.

And on the flip side, surveys show workers sometimes have unrealistic expectations. Some believe they need $600,000/year to achieve financial success. Even the more common benchmark of $100,000/year is double the national median salary and still not enough in many metro areas.

This mismatch creates a standoff—where no one’s satisfied, and nothing moves.

Abusive Workplaces Drive People Away

Beyond pay, toxic work environments are another huge factor. In 2023, the average full-time worker logged 9.2 hours of unpaid overtime per week. That’s over a full extra day—unpaid.

Overtime without compensation, overbearing managers, and unreasonable expectations are burning people out faster than ever. Even when companies succeed at hiring, they struggle with retention.

The Ghost Job Problem

Ever apply for a job and never hear back—only to see the listing still active months later?

That might be a ghost job. Companies post these openings to:

  • Build a talent pool without intent to hire
  • Appear as if they’re growing
  • Keep up internal appearances or investor confidence

This inflates job listings and skews perceptions. People are looking. The jobs just aren’t real.

What’s Happening to College Grads?

Even graduates from top universities like UC Berkeley are struggling to land jobs, especially in competitive fields like tech. That’s led to a surge in master’s and PhD programs—not necessarily to gain knowledge, but to buy time and enhance résumés.

It’s a delay tactic driven by economic necessity.

Location Still Matters—A Lot

In West Virginia, labor force participation in some counties is as low as 42%. The national average ranges up to 77%, but regional gaps are stark.

Former manufacturing and coal regions have been hollowed out, leaving few viable job options. Meanwhile, cities where jobs exist come with sky-high living costs and fierce competition.

Moving sounds like the answer—but it’s not that simple. Relocation is expensive, and people often have family or financial obligations that make it impractical.

The Real Crisis: A Broken Work Equation

What we’re seeing isn’t a workforce that doesn’t want to work. It’s a workforce trapped between:

  • Unlivable wages
  • Toxic job conditions
  • Fake opportunities
  • Skyrocketing cost of living

For many, it’s not about being unwilling—it’s about being unable to afford to participate in a broken system.

What Needs to Change?

If we want people to work, we need to make work worth doing again. That means:

  • Paying fair wages
  • Creating healthy environments
  • Offering real opportunities, not ghost jobs
  • Recognizing regional inequalities

Only then can we expect labor force participation to rebound in a meaningful, sustainable way.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

Author

  • D. Sunderland

    We created How Money Works to show what is really happening in the world of finance. As someone that has worked in both private equity and venture capital, I have a unique perspective on the financial world

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