Kansas Fed paper looks at impact of recessions on US workers

kansas-city-federalreserve
The Federal Reserve Bank of Kansas City

The participation rate in the US labour force has become more dependent on the business cycle since the mid-1980s, a paper published by the Federal Reserve Bank of Kansas City argues. 

The Changing Cyclicality of Labor Force Participation by Willem Van Zandweghe says this trend varies depending on the worker’s age. The participation rate of prime-age workers aged between 25 and 54 has become more prone to vary with the business cycle, while that of older workers has become countercyclical.

Wag

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