Shift or shock? Long-term balance of power in labor markets

ABSTRACT

Despite rapid growth, the aggregate job count remains below its pre-pandemic trend, particularly in service sectors. Participation rates have been depressed, especially among older groups of the population. Lingering COVID-related health care issues and concerns, including care for household members, and softness in compensation relative to inflation are possible factors relating to the softness in the labor force, accentuating the potential benefits of reviving immigration. © 2023, National Association for Business Economics.