Some people are because the decline in the unemployment rate reflects not only increases in employment but declines in labor force participation as well. Declines in participation can include discouraged workers who have stopped looking for work because it is difficult to find a job.
There is concern in some quarters that the unemployment rate will move back up significantly when these discouraged workers reenter the labor force. Based on research by my staff, I am less concerned about this possibility.1 First, it is important to realize that labor force participation rates can decline for reasons other than a rise in discouraged workers.