CBO Report on Labor Force Participation

Whenever a jobs report comes out, one side or the other makes a comment about labor force participation to thwart the message of the other side. …Yeah, but labor force participation went up, or yeah but labor force participation went down. CBO (of course) has a useful March 2011 report on expected trends in the Labor Force participation through 2021. One key issue is how much the movement of the baby boomers will reduce labor force participation over time, and how much of the observed (and future) variation in labor force participation will be due to other factors, like the strength of the economy. This is the money graph from the report (p. 12):

Labor force participation is declining due to demographic changes and that will continue, but it is lower than would be expected due to workers who have exited the labor market for other reasons, some of whom have presumably given up hope of finding a job.

About Don Taylor
Professor of Public Policy at Duke University (with appointments in Business, Nursing, Community and Family Medicine, and the Duke Clinical Research Institute). I am one of the founding faculty of the Margolis Center for Health Policy, and currently serve as Chair of Duke's University Priorities Committee (UPC). My research focuses on improving care for persons who are dying, and I am co-PI of a CMMI award in Community Based Palliative Care. I teach both undergrads and grad students at Duke. On twitter @donaldhtaylorjr

2 Responses to CBO Report on Labor Force Participation

  1. steve2 says:

    Nice Atlanta Fed piece which also cites recent Chicago and Kansas City Fed reports on LFPR.

    http://macroblog.typepad.com/macroblog/2012/05/a-take-on-labor-force-participation-and-the-unemployment-rate.html

    Steve

  2. Pingback: Labor force participation « freeforall

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