This Fast Fact examines labor force participation before and after the COVID-19 pandemic and, as a result, provides important insights into which groups of Americans were most affected by the pandemic.
Figure 1 Labor Force Participation Rates and Employment Population Ratio of the Civilian U.S. Whi levelts, b e Aut m er ce ir ctans ain g had t roups he l of ow wes ortker em s ha ploy ve r men eatch pop ed ul th at os ion r e lev atel io s whi among le ofte he mral s a es re , w sth ilill f e a tlh li is wa ng sho s tr hte c . In pa ase f rtor icu B la la r,ck Noninstitutionalized Population for Those Ages 16 or Older, both male and female White Americans have been slow to return to the labor force, as have male Hispanic Americans among males. Hispanic males had the highest employment population ratio among males, whereas the by Gender and Race/Ethnicity, 2019 –2022 Diversity, Equity, and Inclusion Council Americans. In contrast, Asian Americans’ LFP rate, employment populations rate, and number employed highest ratio for females resulted for Asian females. (Unadjusted December of Each Year) surpassed their 2019 levels. June 8, 2023, #472 2019 2020 2021 2022 70% Number Employed Despite both male and female Black Americans and female Hispanic Americans being more likely to not be employed in 2020, by 2022, the numbers of Americans falling into these groups who were employed were larger 65% th In t an ertm hey w s of nu ere m ibe n 2 r019. I s, 8.9 m n cont illion f rasewer A t, the nu m m eb rier ca o ns w f fem eral e em e Whi ploye te A d i m n D eriec cans em em berp 20 loyed i 20 co n 2022 w mpared wi as l th D ess etce ham n b iter 2019 — 158.5 million vs. 149.6 million. However, the number employed reached 158.9 million in 2022, was in 2019. Since minority groups make up more of the younger generations and, as a result, will be a larger Labor Force Participation and Employment During the 60% surpassing the 2019 number. Yet, this rebound to above the level in 2019 did not occur across all share of the labor force going forward, companies face more urgency in addressing labor force issues around r gende ace/et rhn /rac ici e/ ty ethn if tihey city w ca ant teg Pan tor o deve ies (de F li op a gumi re 3 str)ong w .c by ork Ra force.ce and Ethnicity 55% After the number employed decreased for each gender/race/ethnicity category in 2020 vs. 2019, the numbers of A continued strong labor market will likely lead to the labor force participation and employment population rates Introduction 50% of those 2019 embei plo ng yed rea w ch ered. Ho e at lea w steve as hi r, a downt gh in 2022 urn rie n lat the e ive 2 conom 019 in y w allo ca uld teg likel ories y ha exc lt e th pt e m am ov on em g fent em bac ale Wh k to 2 ite 019 levels. Americans (57.0 million in 2019 compared with 56.3 million in 2022). In contrast, 700,000 more Hispanic female What results could lead to a much different labor force. Studying labor force participation (LFP) before and after the COVID-19 pandemic provides important insights 45% 1 A mericans were employed in 2022 than in 2019. Both Black and Hispanic males had 600,000 more employed in into which groups of Americans were most affected by the pandemic. In addition to the LFP rate, this Fast Fact 2022 vs. The Emp2019. loyee B enefit Research Institute is a private, nonpartisan, and nonprofit research institute based in examines the employment population ratio, i.e., the percentage of those in the specified population who are 40% Washington, D.C., that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby actually employed. This relates to the labor force participation rate by controlling for the unemployed, as the labor and does not take policy positions. The work of EBRI is made possible by funding from its members and force includes anyone working or seeking employment, whereas the employment population ratio only looks at Figure 3 sponsors, which include a broad range of public and private organizations. For more information, visit 35% the percentage employed. Consequently, the labor force could stay the same, while the employment population Number of Employed U.S. Civilian Workers, by Gender www.ebri.org. ratio could go up and down depending on those in the labor force who are actually employed vs. those seeking and Race/Ethnicity, 2019 –2022 employ 30m % ent. (Unadjusted December of Each Year, in Millions) White Black Hispanic Asian White Black Hispanic Asian 1 Labor Force Participation Rate Employment Population Ratio 70 See Copeland, Craig, “Trends in Labor Force Participation and Employment,” EBRI Issue Brief, no. 584 (Employee Benefit 2019 2020 2021 2022 Labor Force Participation Rates Research Institute, May 11, 2023) for more details on trends in labor force participation rates and employment population Source: U.S Department of Labor, Bureau of Labor Statistics, "Labor Force Statistics from the Current Population Survey," http://www.bls.gov/data/ ratios. 60 In 2020, the LFP rate of the civilian U.S. noninstitutionalized population ages 16 or older was 61.3 percent, Figure 2 2 2 compared with 63.0 percent in 2019. By 2022, this number had rebounded to 62.0 percent. However, the LFP All numbers reported are not seasonally adjusted for December of the respective years. Employment Population Rates of the Civilian U.S. Noninstitutionalized Population rates by race and ethnicity did not rebound in the same manner. For White Americans, the LFP rate barely budged for Those Ages 16 or Older, by Gender and Race/Ethnicity, 2019 –2022 50 3 f rT oh m ese its ca low tego er ries ar 2020 e r na otte m — utu 63.0 pe ally exclu rce sn ivte in 2019 groups, t as th o 61. e 4 per Bureace u o nft i Ln ab 2020 or Statis bef tics ore dro ees n achi on t p g 61.8 rovide per an ce exn clu t isn iv2022 e (Unadjusted December of Each Year) Hispanic American group for the labor force statistics, so White, Black, and Asian Americans include both non-Hispanic and (Figur8e 0% 1). In contrast, Hispanic and Black Americans’ LFP rates steadily increased in 2021 and 2022 to be under Hispanic Americans. Analogously, Hispanic Americans could identify their race as either White, Black, Asian, or another 1 per 40 centage point less than in 2019. Asian Americans’ LFP rate jumped up in 2021 to be above its 2019 level 2019 2020 2021 2022 race. 3 75% (64.6 percent vs. 63.4 percent) before falling in 2022, albeit remaining above its 2019 level. 30 ### 70% Employment Population Ratios 65% 20 A similar pattern emerged for the employment population ratios across the race/ethnicity categories examined — White Americans made the smallest recovery to their 2019 level, and Asian Americans’ level was higher in 2022 60% than in 2019 (Figure 1). Hispanic and Asian Americans had higher employment population ratios in 2022 than did 10 White and Black Americans. 55% The male LFP and employment rates were higher in each year than the female rates. This also results for the 0 50% White Black Hispanic Asian White Black Hispanic Asian employment population ratio across each race/ethnicity category and in each year examined (Figure 2). Both Male Female 45% Black and Asian male Americans had higher population ratios in 2022 than they did in 2019. In contrast, White and Hispanic Americans’ employment population ratios were still below their 2019 levels in 2022, but both were Source: U.S Department of Labor, Bureau of Labor Statistics, "Labor Force Statistics from the Current Population Survey," http://www.bls.gov/data/ 40% above their lows in 2020. Conclu 35%sion Among females, Hispanic and Asian Americans had higher employment population ratios in 2022 than they did in 2019, whereas this ratio was lower among White and Black Americans in 2022. In fact, among females, Black 30% The pandemic halted many long-term trends in the American labor market. Many Americans dropped out of the female Americans made the least progress by 2022 toward reaching their 2019 level, while Hispanic males had White Black Hispanic Asian White Black Hispanic Asian labor force or were without a job if they remained in the labor force at the onset of the pandemic. How Americans Male Females the least progress among males. respond now that the pandemic is considered over will have significant implications for workers’ retirements. So Source: U.S Department of Labor, Bureau of Labor Statistics, "Labor Force Statistics from the Current Population Survey," http://www.bls.gov/data/ far, labor force participation rates and employment population ratios have been returning to their prepandemic EBRI on Twitter @EBRI or twitter.com/EBRI LinkedIn: linkedin.com/company/employee-benefit-research-institute © 2023, EmplE E E oB B B yR R R ee I I I on on on Be T T Tn witt witt witt efit e e er r r : : : Re @ @ @E E E se B B Ba R R Rrc I I I o o oh r r r twit twit twit Instit te te ter r r...u c c com/ om/ om/ te, E E E 9B B B 0R R R 1I I I D S L L LinkedI inkedI inkedI t. 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