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Understanding labour force participation in the United Kingdom

Author

Listed:
  • Andrew Benito

    (Bank of England)

  • Philip Bunn

    (Bank of England)

Abstract

Understanding the labour market requires an assessment of labour supply as well as labour demand. Labour supply is a significant component of the overall supply side of the economy which plays a role, alongside demand, in shaping inflationary pressure in the economy. How the economy’s supply capacity has been affected by the recession has been raised as an important issue in recent Inflation Reports. How labour force participation evolves in the medium term is likely to depend on whether recent trends in participation continue and how those trends are affected by, among other things, the recession. This article presents a disaggregated view of labour force participation in order to assess the role of these influences.

Suggested Citation

  • Andrew Benito & Philip Bunn, 2011. "Understanding labour force participation in the United Kingdom," Bank of England Quarterly Bulletin, Bank of England, vol. 51(1), pages 36-42.
    • Handle: RePEc:boe:qbullt:0042
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    References listed on IDEAS

    as
    1. Stephanie Aaronson & Bruce Fallick & Andrew Figura & Jonathan Pingle & William Wascher, 2006. "The Recent Decline in the Labor Force Participation Rate and Its Implications for Potential Labor Supply," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 37(1), pages 69-154.
    2. Paul Gregg & Maria Gutiérrez‐Domènech & Jane Waldfogel, 2007. "The Employment of Married Mothers in Great Britain, 1974–2000," Economica, London School of Economics and Political Science, vol. 74(296), pages 842-864, November.
    3. Balleer, Almut & Gómez-Salvador, Ramón & Turunen, Jarkko, 2009. "Labour force participation in the euro area: a cohort based analysis," Working Paper Series 1049, European Central Bank.
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    Cited by:

    1. Stuart Berry & Matthew Corder & Richard Williams, 2012. "What might be driving the need to rebalance in the United Kingdom?," Bank of England Quarterly Bulletin, Bank of England, vol. 52(1), pages 20-30.
    2. Stephanie Aaronson & Tomaz Cajner & Bruce Fallick & Felix Galbis-Reig & Christopher Smith & William Wascher, 2014. "Labor Force Participation: Recent Developments and Future Prospects," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 45(2 (Fall)), pages 197-275.
    3. Dunsch, Sophie, 2016. "Does labor force participation rates of youth vary within the business cycle? Evidence from Germany and Poland," Discussion Papers 386, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.

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