• Print
  • Email

Economic Perspectives, Vol. 30, No. 1, 2006
The Decline in Teen Labor Force Participation
By the middle of 2005, the U.S. civilian unemployment rate had fallen to 5 percent, a level many analysts consider consistent with essentially full employment. However, individuals who have become discouraged over their prospects of finding suitable employment and, as a result, have given up looking are not counted among the unemployed. Thus, analysts often look to the labor force participation (LFP) rate, the fraction of the population that is either employed or unemployed as an additional indicator of labor market conditions. In fact, the participation rate declined significantly during and after the 2001 recession and remains well below its 2000 level. This could imply more labor market slack than the unemployment rate suggests. The decline in LFP has been especially great for teenagers.
Having trouble accessing something on this page? Please send us an email and we will get back to you as quickly as we can.

Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright © 2024. All rights reserved.

Please review our Privacy Policy | Legal Notices