Crackdown on illegal immigration and boomer retirements continued to reduce the labor force, causing unemployment to drop further. The labor force consists of people who are working and people who are not working but are actively looking for work. The crackdown on illegal immigration and the continuing boomer retirements have substantially reduced the labor force. Over the past 12 months, the labor force – the supply of labor – has plunged by 1.32 million people! The unemployment rate declined to 4.09%, the lowest since January 2025.