Labor Econ

Graphical/Tabular Report

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U.S. Labor Market Trends |

Ngoc Hoang

Econ 4800

Prof. Ethan DoetschApril 21, 2014 |

The labor force participation rate of men has been decreasing over the past 60 years while the trend for women has been increasing rapidly. However, after 2008 the labor force participation rate of women has slightly declined, from 61.2% to 58.5% in 2013. There are various factors accounting for the decline in men’s participation rate in labor force, including changes in laws and government regulations. Social security retirements for the elderly population have affected labor force participation rates. Besides, Social Security Act, which was amended in 1960, has allowed individuals under age 50 eligible to receive disability payments. By providing people with non-labor income, it reduces the incentive to work which leads to people dropping out of the labor force. In contrary, remarkable changes in labor force participation rates of women reflected their significant role in the world of work over the past 60 years. Access to higher education and training used to be a significant barrier to women’s participation in the workforce. However, since the 1950s, the ability to pursue higher education, occupational structure of the economy and medical advances have allowed women to choose between household labor and work in the labor market in order to maximize their utility. Labor-saving technology and home-care products such as washers and dryers, dishwashers, etc. have helped to reduce the amount of time spending on household tasks. Birth control has also provided women with more choices in child bearing decision. Hence, they have had more opportunities to participate in the workforce.

Recession is a significant decline in activity across the economy which lasts for two consecutive quarters. One of its characteristics is a rise in unemployment rate. As a recession takes hold, unemployment rates continue to rise. Specifically, unemployment...