When unemployment is that low, wages are growing broadly, and family incomes are rising. Wage-based demand growth keeps the economy growing at potential.
Any large fall in labor force participation at this point suggests that the labor market is not growing out of recession, but rather that discouraged job seekers are giving up, or not beginning, their job search.
It's unprecedented. There is a large and growing gap between how the economy is performing and the living standards of the people stoking the engine.
Inequality is growing in all parts of the country.