Trends in labor force

Trends in Labor-Force Participation

Thursday, January 23, 14

Change in Labor Force Participation

The labor force participation rate in the United States increased for both males and females almost continuously for two-and-a-half decades after the mid-1960s. There was a standstill of growth only during pausing only briefly during economic downturns.

During these times the role of the woman was ever changing

Thursday, January 23, 14

Change in Labor Force Participation

Such trends change however come the 1990’s where you can see a decline in growth

The labor force participation reaches its highest peak in the first quarter of 2000 at 67.3%

Thursday, January 23, 14

Change in Labor Force Participation

By 2005 labor force participation fell by 1.5%

Since 2005 there has been a continuous, slow decline of labor force participation, the 2012 decline was estimated to be 2% from post depression participation rates

Thursday, January 23, 14

Decline of Labor Force Participation

Graph from http://www.epi.org/publication/ib333-labor-force-participation-since-great-recession/

Thursday, January 23, 14

What does the Graph Show?

Woman have made a greater presence in the work force

There is a great decline of younger workers both male and female

The 25-54 age range for males has dropped 5% while female participation for the same age group grew by 1%

Thursday, January 23, 14

What does the Graph Show?

One of the most interesting findings include overall participation. In 1989 participation was at 66.5% and in 2011 overall participation was at 64.1%

Thursday, January 23, 14

What is Causing the Decline?

Retirement ageYounger

generations going to college

Discouraged workers

Decline in birthrate

Thursday, January 23, 14

Will this Trend Continue?

It is estimated to continue in a slow steady decline due to the “Baby Boomer” generation getting ready for retirement

The population as a whole is seeing trends of earlier retirement, which lessens the labor pool

Families on average are having less children, this means a smaller population thus a smaller labor pool

Thursday, January 23, 14