search
Close Nav

Employment-to-Population Ratio Indicate Delayed Labor Market Recovery

back to top
commentary

Employment-to-Population Ratio Indicate Delayed Labor Market Recovery

December 1, 2021

If you look at some numbers the labor market appears to be recovering. Analysts expect a good jobs report this Friday and unemployment claims have fallen. But these numbers don't tell the full story. The figure below is the employment to population ratio of American men. The shaded areas indicate a recession. 

After each recession many leave the labor force and don't come back, even men who are years away from retirement age. This suggests a long-running structural change that recessions escalate. During the height of the pandemic many people lost their jobs. But more than a year into the recovery, the share of men woking remains more than two percentage points below its pre-pandemic level. If the future is like the past, employment may never recover.

Source: FRED

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.

Interested in real economic insights? Want to stay ahead of the competition? Every Wednesday, e21 delivers a short email that includes e21 exclusive commentary and the latest market news and updates from around the Web. Sign up for the e21 Weekly eBrief

Photo by Orbon Alija/iStock

e21 Partnership

Sign up for our MORNING E-BRIEF for top economics commentary:

By clicking subscribe, you agree to the terms of use as outlined in our Privacy Policy.

 

 

 

 

 

 

 

 

 

ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
Close