Why are Fewer People in the Labor Force During the Great Recession?

Brief

Why are Fewer People in the Labor Force During the Great Recession?

Abstract

This study examines changes in labor force participation during and after the Great Recession and makes comparisons with the recession of 2001. A deceleration in labor force entry rather than an acceleration in labor force exits has driven the decline in labor force participation during and after the Great Recession. The decline in entry rates is concentrated among women, particularly young women and among men ages 55 and older. Moreover, we find that the labor force exit rate is lower following the Great Recession than it was following the 2001 recession.

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

LATEST IN Income and Wealth

To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.