Your theory is that some people don't find it financially worthwhile to work in NYC, so therefore they decide to just give up and not work and not move anywhere else and just do absolutely nothing instead?

In an economy where someone staying home to care for children or elderly parents can easily save $40-60k, I'd believe it.

Homemakers aren't doing nothing, they're just not represented.

Not only is that my theory but that is literally the article we’re all commenting on “labor participation down” and this is one explanation based on discussions with hundreds of friends and classmates struggling with this issue.

You have to work where the jobs are. Where the jobs are is expensive as fuck, AI and the economy are driving down labor costs (both actual number of salaries and the cost of those individual salaries)... but rent and other living costs are only going up.