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Will a Surge in Labor Force Participation Impede Unemployment Rate Improvement?, No. 13-08

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Will a Surge in Labor Force Participation Impede Unemployment Rate Improvement?, No. 13-08

DATE: August 2013

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ABSTRACT: The labor force participation rate has been falling since 2000, a trend that accelerated somewhat during the 2007-09 recession. Some economists and journalists have questioned whether recent improvements in the labor market will cause non-participants to re-enter the labor force at a faster rate, thus offsetting job growth and impeding further declines in the unemployment rate. But recent worker-flow research suggests that this scenario is unlikely.

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Hornstein, Andreas , Rhodes, Karl and Federal Reserve Bank of Richmond. "Will a Surge in Labor Force Participation Impede Unemployment Rate Improvement?, No. 13-08," Economic Brief (August 2013). https://fraser.stlouisfed.org/title/6034/item/583915, accessed on June 7, 2023.

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