Urban Institute. August 1, 2013.
The study examines changes in labor force participation during and after the Great Recession and makes comparisons with the recession of 2001. A deceleration in labor force entry rather than an acceleration in labor force exits has driven the decline in labor force participation during and after the Great Recession. The decline in entry rates is concentrated among women, particularly young women and among men ages 55 and older. Moreover, the authors find that the labor force exit rate is lower following the Great Recession than it was following the 2001 recession. [Note: contains copyrighted material].
http://www.urban.org/UploadedPDF/412880-why-are-fewer-people.pdf [PDF format, 6 pages].
Peterson Institute for International Economics. August 2013.
One of the factors that may inhibit reductions in unemployment as the economy recovers is the extent to which existing workers would like to work more hours and employers may prefer to let them work longer hours before making new hires. This phenomenon suggests that the unemployment rate does not capture the full extent of excess capacity in the labor market. But how should it be measured? This paper argues that the United States does not have the necessary statistical tools to calibrate this form of underemployment. The authors describe an index that captures the joint eff ects of unemployment and underemployment and provides a more complete picture of labor market excess capacity. [Note: contains copyrighted material].