Paper finds pro-cyclical labour market in the great recession


Labour force participation in the US has fallen about 2½ percentage points since the great recession – a pro-cyclical shift which violates conventional wisdom on labour markets, according to a new working paper.

In Labor Force Participation and Monetary Policy in the Wake of the Great Recession, Christopher Erceg and Andrew Levin, two researchers on leave from the Federal Reserve Board as visitors in the research department at the IMF, claim "cyclical factors account for the bulk of the post

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