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

Author

Listed:
  • Alison Felix
  • Samantha Shampine

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.

Suggested Citation

  • Alison Felix & Samantha Shampine, 2022. "Lower Labor Force Participation Rates and Slower Population Growth Pose Challenges for Employers," Economic Bulletin, Federal Reserve Bank of Kansas City, issue Mar 30, 2, pages 1-4, March.
    • Handle: RePEc:fip:fedkeb:93904
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    File URL: https://www.kansascityfed.org/documents/8717/EconomicBulletin22FelixShampine0330.pdf
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    More about this item

    Keywords

    Labor foce; Population; Job openings;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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