A person born in 1950 would have been 25 in 1975; entering the workforce as part of the sharp spike up in the ratio. That same person would have been 58 in 2008, of course. Losing a job at that age means that they are unlikely to find new employment near their peak wages before reaching 65. A lot of people are in that position now; those with savings will need to spend that cash to support themselves. Dis-saving is taking place.
The size of the boomer group compared to the population as a whole indicates that the employment ratio will remain low for the decades of the boomer retirement years.