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Labor Force Participation: An Analysis of Discouraged Workers and the Marginally Attached, Schemes and Mind Maps of Statistics

An overview of the u.s. Bureau of labor statistics' (bls) measures of labor underutilization, specifically focusing on the group of persons referred to as 'marginally attached to the labor force'. The increase in the number of discouraged workers and other marginally attached individuals during the 2008-2009 recession, as well as their demographic characteristics. The data presented in the document comes from the current population survey (cps) and is used to calculate various labor market indicators, including the national unemployment rate.

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U.S. Department of Labor • U.S. Bureau of Labor Statistics
Summary 09-04 / April 2009
six alternative measures of la-
bor underutilization published
monthly by BLS and referred
to as U-1 through U-6.5 Dis-
couraged workers are included
in U-4. The U-5 and U-6 mea-
sures, which are broader still,
include all persons marginally
attached to the labor force;
U-6 also includes involuntary
part-time workers.
All of these data come from
the Current Population Survey
(CPS), a monthly survey of
some 60,000 households that
is the source of the national
unemployment rate and many
other labor market indicators.
Information on persons mar-
ginally attached to the labor
force has been collected since
1994.
This Issues paper was pre-
pared by Sharon Cohany, an
economist in the Division of
Labor Force Statistics, Office
of Employment and Unem-
ployment Statistics. E-mail:
CPSInfo@bls.gov; Telephone:
(202) 691-6378.
Information in this sum-
mary will be made available
to sensory-impaired individu-
als upon request. Voice phone:
(202) 691-5200. Federal Re-
lay Service: 1-800-877-8399.
This report is in the public do-
main and may be reproduced
without permission. □
Ranks of Discouraged Workers and Others
Marginally Attached to the Labor Force
Rise During Recession
When economic condi-
tions deteriorate, great-
er attention is paid to persons
who are without work and
seeking jobs—the unem-
ployed. At such times, there
is also greater interest in a
group of persons who do not
meet the official definition of
unemployment but who have
shown interest in labor force
participation. These individu-
als—referred to as “marginally
attached to the labor force”—
wanted and were available
for work and had looked for a
job sometime in the prior 12
months. They were not counted
as unemployed because they
had not actively searched for
work in the past 4 weeks.
The number of persons who
were marginally attached to the
labor force increased sharply
during the current recession,
rising to 2.1 million in the first
quarter of 2009.1 (See table 1
and charts 1 and 2.) Their num-
ber increased by 541,000, or 35
percent, from the first quarter
of 2008.2 By comparison, dur-
ing that same 1-year period, the
number of unemployed rose to
13.5 million, an increase of 5.5
million, or 68 percent.
Among the marginally at-
tached, the number of discour-
aged workers rose to 717,000
in the first quarter of 2009, a
70-percent increase from the
first quarter of 2008. Discour-
aged workers are persons who
are not currently looking for
work because they believe that
there are no jobs available for
them. Relative to their share of
the labor force, young people,
blacks, and, to a lesser extent,
Hispanics and men were over-
represented among discouraged
workers in the first quarter of
2009. (See table 2.) 3
The remaining 1.4 million
persons who were margin-
ally attached to the labor force
wanted a job but had not looked
for work in the past 4 weeks for
reasons such as family respon-
sibilities or transportation prob-
lems. The number of persons in
this group also expanded dur-
ing 2008, although to a lesser
extent (22 percent) than dis-
couraged workers. Compared
with the labor force, other mar-
ginally attached persons were
more likely to be female, black,
and under the age of 25.
The marginally attached—
including discouraged work-
ers—account for a small pro-
portion of the total number of
persons not in the labor force:
2.6 percent of the 81.3 million
persons not in the labor force
in the first quarter of 2009 were
classified as marginally at-
tached. More typically, persons
who are not in the labor force
do not currently want a job, of-
ten because they are retired, at-
tending to family responsibili-
ties, going to school, or too ill
or disabled to work.4
Because the marginally at-
tached are sometimes considered
to be at the edge of labor force
participation, they are included,
in part or in whole, in three of the
1 All of the data presented in this
report are not seasonally adjusted.
2 The current recession began in
December 2007 (as designated by
the National Bureau of Economic
Research). Because data on the mar-
ginally attached are not available
on a seasonally adjusted basis, this
report uses over-the-year compari-
sons. Quarterly averages rather than
monthly estimates are used to im-
prove the reliability of the estimates
presented.
3 The five specific reasons for dis-
couragement are 1) thinks no work
available, 2) could not find work, 3)
lacks schooling or training, 4) em-
ployer thinks too young or old, and 5)
other types of discrimination.
4 About 3.6 million persons want-
ed a job in the first quarter of 2009 but
did not meet the criteria to be margin-
ally attached, primarily because they
had not looked for work in the past
12 months.
5 See The Unemployment Rate
and Beyond: Alternative Measures
of Labor Underutilization, Summary
08-06, June 2008, available on the
Internet at http://www.bls.gov/opub/
ils/pdf/opbils67.pdf.
pf3

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U.S. Department of Labor • U.S. Bureau of Labor Statistics

Summary 09-04 / April 2009

six alternative measures of la-

bor underutilization published

monthly by BLS and referred

to as U-1 through U-6.^5 Dis-

couraged workers are included

in U-4. The U-5 and U-6 mea-

sures, which are broader still,

include all persons marginally

attached to the labor force;

U-6 also includes involuntary

part-time workers.

All of these data come from

the Current Population Survey

(CPS), a monthly survey of

some 60,000 households that

is the source of the national

unemployment rate and many

other labor market indicators.

Information on persons mar-

ginally attached to the labor

force has been collected since

This Issues paper was pre-

pared by Sharon Cohany, an

economist in the Division of

Labor Force Statistics, Office

of Employment and Unem-

ployment Statistics. E-mail:

CPSInfo@bls.gov; Telephone:

Information in this sum-

mary will be made available

to sensory-impaired individu-

als upon request. Voice phone:

(202) 691-5200. Federal Re-

lay Service: 1-800-877-8399.

This report is in the public do-

main and may be reproduced

without permission. □

Ranks of Discouraged Workers and Others

Marginally Attached to the Labor Force

Rise During Recession

W

hen economic condi-

tions deteriorate, great-

er attention is paid to persons

who are without work and

seeking jobs—the unem-

ployed. At such times, there

is also greater interest in a

group of persons who do not

meet the official definition of

unemployment but who have

shown interest in labor force

participation. These individu-

als—referred to as “marginally

attached to the labor force”—

wanted and were available

for work and had looked for a

job sometime in the prior 12

months. They were not counted

as unemployed because they

had not actively searched for

work in the past 4 weeks.

The number of persons who

were marginally attached to the

labor force increased sharply

during the current recession,

rising to 2.1 million in the first

quarter of 2009.^1 (See table 1

and charts 1 and 2.) Their num-

ber increased by 541,000, or 35

percent, from the first quarter

of 2008.^2 By comparison, dur-

ing that same 1-year period, the

number of unemployed rose to

13.5 million, an increase of 5.

million, or 68 percent.

Among the marginally at-

tached, the number of discour-

aged workers rose to 717,

in the first quarter of 2009, a

70-percent increase from the

first quarter of 2008. Discour-

aged workers are persons who

are not currently looking for

work because they believe that

there are no jobs available for

them. Relative to their share of

the labor force, young people,

blacks, and, to a lesser extent,

Hispanics and men were over-

represented among discouraged

workers in the first quarter of

2009. (See table 2.) 3

The remaining 1.4 million

persons who were margin-

ally attached to the labor force

wanted a job but had not looked

for work in the past 4 weeks for

reasons such as family respon-

sibilities or transportation prob-

lems. The number of persons in

this group also expanded dur-

ing 2008, although to a lesser

extent (22 percent) than dis-

couraged workers. Compared

with the labor force, other mar-

ginally attached persons were

more likely to be female, black,

and under the age of 25.

The marginally attached—

including discouraged work-

ers—account for a small pro-

portion of the total number of

persons not in the labor force:

2.6 percent of the 81.3 million

persons not in the labor force

in the first quarter of 2009 were

classified as marginally at-

tached. More typically, persons

who are not in the labor force

do not currently want a job, of-

ten because they are retired, at-

tending to family responsibili-

ties, going to school, or too ill

or disabled to work.^4

Because the marginally at-

tached are sometimes considered

to be at the edge of labor force

participation, they are included,

in part or in whole, in three of the

(^1) All of the data presented in this report are not seasonally adjusted. (^2) The current recession began in December 2007 (as designated by the National Bureau of Economic Research). Because data on the mar- ginally attached are not available on a seasonally adjusted basis, this report uses over-the-year compari- sons. Quarterly averages rather than monthly estimates are used to im- prove the reliability of the estimates presented. (^3) The five specific reasons for dis- couragement are 1) thinks no work available, 2) could not find work, 3) lacks schooling or training, 4) em- ployer thinks too young or old, and 5) other types of discrimination. (^4) About 3.6 million persons want- ed a job in the first quarter of 2009 but did not meet the criteria to be margin- ally attached, primarily because they had not looked for work in the past 12 months. (^5) See The Unemployment Rate and Beyond: Alternative Measures of Labor Underutilization , Summary 08-06, June 2008, available on the Internet at http://www.bls.gov/opub/ ils/pdf/opbils67.pdf.

Table 2. Distribution of persons in the labor force or marginally attached to the labor force by selected characteristics, first quarter 2009, not seasonally adjusted (Percent distribution) Marginally attached to the labor force^2 Total Discouraged workers^3 Other^4 Total (in thousands) ......................................................................... 153,659 2,096 717 1, Percent ............................................................................................. 100.0 100.0 100.0 100. Men................................................................................................... 53.3 52.7 62.6 47. Women ............................................................................................ 46.7 47.3 37.4 52. White ............................................................................................... 81.6 69.2 66.9 70. Black or African American................................................................. 11.4 22.2 23.6 21. Asian................................................................................................. 4.6 4.4 4.7 4. Hispanic or Latino ethnicity............................................................... 14.3 16.8 17.7 16. 16 to 24 years ................................................................................... 13.6 29.7 24.4 32. 25 to 54 years ................................................................................... 67.7 51.4 54.8 49. 55 years and older ........................................................................... 18.7 18.8 20.8 17. NOTE: Estimates for the above race groups (white, black or African American, and Asian) do not sum to totals because data are not presented for all races. Persons whose ethnicity is identified as Hispanic or Latino may be of any race. (^1) The sum of the employed plus the unemployed. (^2) Refers to persons who have searched for work during the prior 12 months (but not the prior 4 weeks) and were available to take a job during the reference week. Persons marginally attached to the labor force are a subset of not in the labor force. (^3) Includes the following reasons for not actively looking for work in the prior 4 weeks: Thinks no work available, could not find work, lacks schooling or training, employer thinks too young or old, and other types of discrimination. (^4) Includes those who did not actively look for work in the prior 4 weeks for such reasons as school or family responsibilities, ill health, and trans- portation problems, as well as those for which reason for nonparticipation was not determined. Table 1. Persons not in the labor force, selected quarters, not seasonally adjusted (Numbers in thousands) First quarter 2008 First quarter 2009 Total Percent Total Percent Total not in the labor force ............................................................... 79,985 100.0 81,253 100. Persons who currently want a job .................................................. 4,719 5.9 5,663 7. Marginally attached to the labor force, total^1 ............................... 1,555 1.9 2,096 2. Reason not currently looking: Discouragement over job prospects^2 ......................................... 421 .5 717. Reasons other than discouragement^3 ........................................ 1,134 1.4 1,379 1. (^1) Refers to persons who have searched for work during the prior 12 months (but not the prior 4 weeks) and were available to take a job during the reference week. Persons marginally attached to the labor force are a subset of not in the labor force. (^2) Includes the following reasons for not actively looking for work in the prior 4 weeks: Thinks no work available, could not find work, lacks schooling or training, employer thinks too young or old, and other types of discrimination. (^3) Includes those who did not actively look for work in the prior 4 weeks for such reasons as school or family responsibilities, ill health, and trans- portation problems, as well as those for whom reason for nonparticipation was not determined. Category Characteristic Labor force^1