Uncounted in the Unemployment Rate, but They Want to Work

Moreover, after the last recession, many economists said those who left the labor force were unlikely to come back, whether because of disabilities, the opioid crisis, a loss of skills or other reasons. Yet labor force participation, adjusted for demographic shifts, eventually returned to its previous level.

But the speed with which the pandemic has driven workers from the labor force has had devastating effects that could leave lasting damage.

The labor force participation rate among those 16 or older has dropped to about 61 percent from 63 percent in February 2020. Among prime age workers — those 25 to 54 — it has declined to 81 percent from 83 percent.

Women in their prime working years have quit the labor force at nearly twice the rate of men, according to research by Wells Fargo, partly because more women work in industries like leisure and hospitality that are less suited to social distancing and partly because women are more likely to bear the burden of child care. The share of Black women who have left the labor force is more than twice the share of white men.

Then there are the many people who may be seeking a job but who are unavailable to take one because of health concerns, illness or caretaking obligations, putting them in what economists say is something of a gray area — between being unemployed and not in the labor force — that has become more common during the pandemic.

A single mother, Frankie Wiley, 29, worked as a housekeeper at a resort in Bloomington, Minn., until she was laid off last March. She would like a paid job, but she has to stay home with her 11-year-old daughter, who is attending school remotely.

“I take care of her, so I’m her only support,” she said. She said she plans to return to work once her daughter can go back to school safely.

Article source: https://www.nytimes.com/2021/03/15/business/economy/labor-force-dropouts.html