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Study finds overall decline in labor force participation in the U.S.

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  • Published January 31, 2018
    By : Staff Writer

In 1984, the United States had one of the highest prime-age (25-54) female labor-market participation rates of any developed country. But a new report has found that America is no longer a leader.

Although the many causes of prime-age female labor force participation are not well understood, some are likely to reflect broader labor market opportunities impacting both men and women, the report said.

The Recent decline in women’s labor force participation report was published late in 2017 by The Hamilton Project. The authors, whose research focus on a range of issues including gender and discrimination, labor market outcomes, and childhood poverty, are Sandra E. Black, nonresident Senior Fellow, Economic Studies, The Brookings Institution; Audrey Breitwieser, research assistant, The Hamilton Project, and Nonresident Senior Fellow Diane Whitmore.

According to the report, since 2000, women’s labor force participation has fallen by 3.5 percentage points. This pattern persists across women of varying races and ethnicities, educational backgrounds, ages, and marital statuses, and for women with and without children alike.

If prime-age women (25-54 years of age) are choosing to stay home to care for their children more frequently than before, the implications of these decisions would be different from the implications if these women were choosing not to participate in the labor market as a result of poor labor-market opportunities, as appears to be the case for prime-age men, the study says.

Some of the workforce challenges listed in the report are:

  • The United States is the only developed nation without paid maternity leave, and the United States lags far behind other nations in family-friendly policies. Furthermore, the fact that women’s labor force participation is now trending in parallel to that of men suggests that perhaps women are now responding to the same forces as men.
  • Although the U.S. labor market is among the most flexible according to OECD metrics, it is also among the least supportive in terms of generosity of unemployment benefits and active labor-market policies, including job search assistance and training.
  • In order to facilitate economic growth in the United States, the study recommends policies that enable and encourage women to participate in the labor force.

      Strengthening and expanding the unemployment insurance system and providing worker training, as well as public jobs programs, might help both women and men stay more attached to the labor market while they are in their prime working years, the study says.
      These policies, in addition to implementing paid family leave and expanded access to child care, would likely increase the labor force participation rate of prime-age women, the report said.

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