The numbers do make for an interesting big picture.
Many economists blame the overall decline in the labor force on the growing government dependency being fostered by big government advocates over the past 20 years. The explosion in food stamp participation over the past 3 years is unrivaled against any past recession. The growth has been driven largely through aggressive government advertising and a loosening of the program qualifications.
The ongoing roll back of the Clinton welfare reforms mirrors the downward trend in female work participation you discuss.
These politics of poverty where votes are bought with benefits have a huge impact on society. When people are encouraged not to work those are the economic numbers you see.
