Below is an excerpt from the US News documenting a drop in labor force participation since the start of the pandemic. Is this good or bad for the labor market? How will this affect the unemployment rate? What are some possible short term and long term reasons of why we observe this change?

"The number (labor force participation rate), 61.4%, compares to 61.7% a month earlier and is equal to July's number. The figure fell to a yearly low of 60.2% in April, as the nation shut down to deal with the COVID-19 pandemic.

There were differences by gender and race, with the labor participation of men 20 years and older at 69.9%, down from 70.1% in August, and women 20 and older at 56.8% compared to 57.6% a month earlier.

The rate for Black workers was down 0.7 percentage points to 59.7% from 60.4% in August.

...

A decade ago, the overall rate was 64.6%, with adult males at 74.1% and women at 60.3%."

[US News, 10/07/2020]