April 4, 2014

Labor Force Participation Improves
 for Those Under 25 Years of Age

Keith Hall

Former Senior Research Fellow
Summary

The US economy added 192,000 jobs in the month of March, according to the Bureau of Labor Statistics. Meanwhile, the labor force participation rate ticked up 0.2 points to 63.2 percent, though it remains well below pre-recession levels.

The US economy added 192,000 jobs in the month of March, according to the Bureau of Labor Statistics. Meanwhile, the labor force participation rate ticked up 0.2 points to 63.2 percent, though it remains well below pre-recession levels.

Below, Mercatus Center senior research fellow Keith Hall, a former BLS commissioner, reacts to the data in today's report:

"Today’s job report was generally good. Nonfarm payroll jobs rose 192,000 in March. All of the gain was in the private sector. This marks the second straight month of solid job growth.

"Both the labor force participation rate and the employment rate rose modestly to 63.2 percent and 58.9 percent, respectively, while the unemployment rate was unchanged at 6.7 percent.

"All of the rise in the labor force in March came from those under 25 years of age (503,000). So far this year, the labor force has grown by nearly 1.3 million people.

"The gains in the labor force have come despite the expiration of extended unemployment benefits in December for about 1.3 million people. In fact, we have seen a notable rise in the share of those re-entering employment from unemployment."