Labor force participation: Is the labor market too hot, too cold, or just right?

October 18, 2019

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Even though the pace of U.S. job growth is likely to slow through the end of 2019, prospects for the labor supply could be brighter than once thought. New Vanguard research examines factors beyond the demographic composition measures that are typically studied, allowing for a deeper understanding of current and future labor force participation rates.

Vanguard's model also takes into account changes in the propensity to participate in the labor market based on age and generational differences. As future generations are more highly educated and work longer, a higher participation rate could persist—a positive sign for long-term future growth prospects.

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