Journal Article

Lower Labor Force Participation Rates and Slower Population Growth Pose Challenges for Employers

Abstract: As the nation recovers from the pandemic-induced recession, finding workers to fill job openings has been a headwind for many regions and industries. Although many researchers have pointed to the sharp decline in labor force participation rates as an explanation, the role of population growth over time has received less attention. We examine state and national trends in these measures and show that slower population growth and an aging population may put downward pressure on labor force growth for some time.

Keywords: Labor foce; Population; Job openings;

JEL Classification: J21;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2022-03-30

Issue: Mar 30, 2022

Pages: 4