by James Sherk, Salim Furth
The Heritage Foundation
November 07, 2013
The recession officially ended four years ago, yet the labor market has remained weak. Neither mismatch nor insufficient demand can explain why employment rates have not improved, but considerable evidence suggests that the labor supply has also fallen, holding back job creation. Labor force participation has fallen sharply over the past four years. Even as the number of job openings has rebounded, hiring rates have not. Changes in government policy have raised effective labor tax rates, strongly discouraging labor force participation. Congress should reform social assistance programs to reduce the disincentive to work.

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