Experts say and studies suggest that generous federal pandemic unemployment benefits reduced the U.S. labor participation rate, contributing to business difficulties in finding workers.
The U.S. Bureau of Labor Statistics (BLS) noted a decline in the workforce participation rate through 2021.
The BLS cited a study released by the Federal Reserve Bank of Chicago, “Has the Willingness to Work Fallen During the Covid Pandemic?” which examined the effect of the pandemic on survey respondents’ willingness to work.
It found that the sharp increase in the aggregate hours gap (AHG), which was used to measure labor market participation during the pandemic, had largely faded away by the end of 2021….