Employment Rates

Economy & Inflation
Written By Tamika Turner

The nationwide employment rate of 59.5% is 1.7 percentage points lower than Feb 2020. Hispanic and Black workers were hit hard, with employment rates down 2.3 and 2.9 points, respectively.

Employment rates for men and women are 1.9 and 1.7 percentage points below February 2020 and are now similar to levels following the Great Recession.

Employment rate by race/ethnicity, U.S.

Jan 2008 - Dec 2021

Source: Bureau of Labor Statistics. Note: The employment rate is officially known as the “employment-population ratio.” Here it is calculated for the population 16 years and older. Data is seasonally adjusted.

The nation gained only 199,000 jobs in December and the employment rate inched up to 59.5% but remained below its February 2020 level before the pandemic hit. In December 2021, only 57% of Black people aged 16+ nationwide were employed. White, Hispanic, and Asian persons aged 16+ had employment rates of 60%, 63%, and 62%, respectively. Employment among Black teens was particularly low, which is concerning as early work experience can have lifetime earning implications.1,2

While many employers report difficulty finding workers, the number of total jobs has still not rebounded to pre-pandemic levels. Instead, workers are quitting at record levels. Many potential hirees are demanding higher wages and better working conditions — including livable wages and work schedules, flexibility, and remote work.3,4,5 Additionally, long-Covid may be taking a significant bite out of the workforce. New research indicates that, of the 100 million working-age Americans who have contracted Covid, about one-fourth to one-third experience symptoms such as shortness of breath, chest pain, fatigue, and “brain fog” for months after infection — including many who had mild symptoms when infected.6,7 With some of these adults out of work and others reducing work hours, an estimated 1.6 million full-time equivalent workers may be out of the workforce any given month due to long-Covid. This would account for 15% of the 10.6 million unfilled jobs in December.8

Employment rate by gender, U.S.

Jan 2008 - Dec 2021

Source: Bureau of Labor Statistics. Note: The employment rate is officially known as the “employment-population ratio.” Here it is calculated for the population 20 years and older. Data is seasonally adjusted.

Nationally, in December 2021, the employment rate for men inched up to 67.4%, while the employment rate for women increased to 55.7%. Overall, women have been significantly more likely to leave the labor force than men since the pandemic hit.9

Child care and elder care remain significant impediments to women’s ability to return to work. In December, nearly 1.2 million parents reported being unable to look for a job due to disruption in child care (Child Care Disruptions). And mothers of children under 6 have been most likely to consider leaving their job or cutting back on hours.10 Demand for home health aides hit a high point in 2020 as families aimed to keep elderly and disabled family members out of nursing homes where the virus circulated widely.11 But many women had to provide elder care themselves, making a return to work more difficult.

Women are also more affected by long-Covid (shortness of breath, fatigue, brain fog months after infection), and long-Covid accounts for an estimated 1.6 million adults out of the workforce each month. Long-Covid affects a significant portion (up to ⅓) of everyone infected by Covid–including those with milder symptoms when first infected.12,13 With the new Omicron variant of Covid sweeping the nation, an increasing number of workers, especially women, may be sidelined in 2022 due to long-Covid.14

“December’s Jobs report reveals a growing racial employment gap, especially for Black women”. Broady, Barr. Brookings. January, 2022. https://www.brookings.edu/blog/the-avenue/2022/01/11/decembers-jobs-report-reveals-a-growing-racial-employment-gap-especially-for-black-women/ 

  1. “The Importance of a First Job”. Decker. Aspen Institute. November, 2016. https://www.aspeninstitute.org/blog-posts/finding-opportunities-opportunity-youth/ 

  2. “The truth behind America’s labor shortage is we’re not ready to rethink work”. Kaplan, Winck. Insider. May, 2021. https://www.businessinsider.com/labor-shortage-unemployment-benefits-america-reopening-rethink-work-employment-wages-2021-5

  3. “ Many people don’t want to work unless it’s from home”. Molla. Vox. June, 2021. https://www.vox.com/recode/22543409/remote-work-from-home-jobs-supply-demand-hiring-platforms

  4. “Customers Are Back at Restaurants and Bars, but Workers Have Moved On”. Haddon, Chen, and Weber. The Wall Street Journal. July, 2021. https://www.wsj.com/articles/customers-are-back-at-restaurants-and-bars-but-workers-have-moved-on-11626168601

  5. “Studies show long-haul COVID-19 afflicts 1 in 4 COVID-19 patients, regardless of severity”. UCDavis Health. March, 2021. https://health.ucdavis.edu/newsroom/news/headlines/studies-show-long-haul-covid-19-afflicts-1-in-4-covid-19-patients-regardless-of-severity/2021/03

  6. “Female gender is associated with long COVID syndrome: a prospective cohort study”. Bai, Tomasoni, Falcinella, Barbanotti, Castoldi, Mulè, Augello, Mondatore, Allegrini, Cona, Tesoro, Tagliaferri, Viganò, Suardi, Tincati, Beringheli, Varisco, Battistini, Piscopo, Vegni, Tavelli, Terzoni, Marchetti, and Monforte. https://pubmed.ncbi.nlm.nih.gov/34763058/

  7. “Is ‘long Covid’ worsening the labor shortage?” Bach. Brookings. January, 2022. https://www.brookings.edu/research/is-long-covid-worsening-the-labor-shortage/?utm_campaign=Brookings%20Brief&utm_medium=email&utm_content=200588850&utm_source=hs_email 

  8. “Labor market exits and entrances are elevated: Who is coming back?” Bauer, Edelberg. Brookings. December, 2021. https://www.brookings.edu/blog/up-front/2021/12/14/labor-market-exits-and-entrances-are-elevated-who-is-coming-back/ 

  9. "Mothers are being left behind in the economic recovery from COVID-19”. Bauer. Brookings. May, 2021. https://www.brookings.edu/blog/up-front/2021/05/06/mothers-are-being-left-behind-in-the-economic-recovery-from-covid-19/

  10. “Business Is Booming, But Home Care Demand Is ‘Probably at a Midpoint’”. Famakinwa. Home Health Care News. December, 2020. https://homehealth carenews.com/2020/12/business-is-booming-but-home-care-demand-is-probably-at-a-midpoint/

  11. “Long COVID: The Impact on Women and Ongoing Research”. Chinnappan. Society for Women’s Health Research. March, 2021. https://swhr.org/long-covid-the-impact-on-women-and-ongoing-research/

  12. “Is ‘long Covid’ worsening the labor shortage?” Bach. Brookings. January, 2022. https://www.brookings.edu/research/is-long-covid-worsening-the-labor-shortage/?utm_campaign=Brookings%20Brief&utm_medium=email&utm_content=200588850&utm_source=hs_email 

  13. “‘Omicron the Pandemic Killer’ Idea Ignores Dangers of Long COVID”. Diamond. Infection Control Today. January, 2022. https://www.infectioncontroltoday.com/view/-omicron-the-pandemic-killer-idea-ignores-dangers-of-long-covid 

Tamika Turner
Previous

Missing Data
Next

Child Poverty