Everyone has always just assumed that when very few people who want a job don't have one, that it means the economy is in great shape. They haven't yet defined what it means when a larger and larger portion of the population (for various reasons, including retirement), simply no longer want to work.



In a way oversimplified example, say you have a town of 20 people. This town, being on the edge of nowhere, has to be self sufficient. 5 farmers, 2 builders, a mayor, a police chief, a restaurant owner, a banker, an accountant, seamstress, a cobbler, a blacksmith, a teacher, and a fireman. 3 people are unemployed but supported by the town. There is no excess, the town merely survives. Unemployment sits at 15%.

One year, 7 people decide they no longer want to work. Two of their professions are backfilled by 2 of the unemployed. Unemployment has been slashed to only 7.7%, nearly in half! YAY!!!!!

Keep in mind there are now only 12 people working and 8 that the town is supporting. How's the town doing?