There is a lie in that chart...that ALL those not in the labor force are so discouraged they left the labor force.
As of August the breakdown of those age 25-54 Not in the Labor Force was:
Total: 23,624,000
Did Not Want a Job: 20,899,000
Wanted to work, did not look for work in over a year: 1,461,000
Wanted to work, looked in last year but not last 4 weeks, not available to start now: 301,000
Wanted to work, looked in last year but not last 4 weeks, available to work, stopped looking for personal reasons (family issues, school, transportation etc) 639,000
Wanted to work, looked in last year but not last 4 weeks, available to work, stopped looking due to discouragement: 324,000
Source:
A-38. Persons not in the labor force by desire and availability for work age and sex