Projecting Changes in the US Labor Force

Population aging in the US and other developed countries presents a challenge for future economic growth and the sustainability of public programs. Yet tax revenues and government expenditures depend not only on the age composition of the population but also on the size of the labor force. Rising labor market participation rates may compensate for a smaller working-age population. Projections of labor force participation are therefore crucial for the assessment of future revenues and costs of social security systems.