Journal Article

Labor market anxiety and the downward trend in the job separation rate

Abstract: Anecdotal evidence suggests that labor market conditions surrounding American workers had been worsening in recent decades, even before the severe recession in 2007-2009. However, studies by academic researchers have not found clear evidence that worker turnover has increased over time. In this article, Shigeru Fujita shows that there is a long-run downward trend in the separation rate into unemployment and examines several factors that help account for this long-run decline. He argues that the aging of the labor force has played an important role in the trend. He also explains, using an economic model, how the declining separation rate can result from workers? response to the increased sense of job insecurity.

Keywords: Labor market;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 2012

Issue: Q4

Pages: 1-7