Yariv Fadlon, Ph.D.
Tel: (615) 818-6932
Education: Vanderbilt University, Ph.D. in Economics 2010.
When will the current labor shortage end?
By Yariv Fadlon, Ph.D. (April 2022)
The current labor shortage is likely to continue because of the rise in the proportion of retirees in the population. The Figure below illustrates the changes in the proportion of retirees from the adult population and the labor force participation rate over the last ten years.
During the pandemic, most of the decline in the labor force participation rate can be explained by the increase in the proportion of retirees.
Labor Force Participation Rate and Rate of RetireesSource: Current Population Survey, March Survey Unseasonal data