The surge in job growth in February, which was fuelled by a rise in new entrants to the labour force, supports the doves’ view that there is still hidden slack in the labour market. But the story isn’t quite that straightforward. Almost all of the cyclical gap in the prime-age participation rate that opened up since the financial crisis now appears to have closed. However, the recent decline in disability rates, which reverses a decades-long trend, does suggest there is scope for the prime-age participation rate to rise further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services