Question

Is the declining labor force participation rate amongst men a bad thing?

In class this week, we learned that 16% of men aged between 25-54 in 2014 were not working. That number is nearly triple the amount seen in 1968- ~5%- and is significantly larger than prior decades. In 1950, about 4/100 men didn't go to work. Currently 14/100 men don't go to work. So what's goin on?

Certainly it's a bad thing that the labor force participation amongst men is declining when looking at the perspective with a quick glance. But only 1/3rd of the rise for prime-aged men can be explained by unemployment. There's more to the story, which leads me to believe that it isn't as bad as it looks.

Male graduation rates have risen by 5% since 2000 and school accounts for a 13% increase in prime-aged non-workers. With more males going to school, the LFPR is declining. However, in the long-run education and skills are rising, which leads to a better occupation. Furthermore, about 24% of men are staying home to take care of their families now- which is a rise from 17% in 2016. So, I don't view it as a bad thing that males are staying home to protect and care for their loved ones. Additionally, disabilities might play a role. Disabilities significantly prevent workers from returning to work, which may be another answer to this "problem." However, those with disabilities receive payments to assist with their living conditions.

The debate can go either way on this topic, and I view this decline as neither good nor bad. There is evidence for both sides of the story. What do you think?

Answer 1

Labor Force participation is declining among men . As mentioned in the question that 16% of men aged 24-25 were not working in 2014. The number is still increasing day by day. This decline in Labor Force Participation Rate (LFPR) has been capturing attention from economists and policymakers all over the world. Their is no particular and clear reason for this. Every organization or institution has done it's own research and concluded their own reasons. The cause for decline in LFPR is from both the sides ,Supply and Demand for labor. If you see from supply side then according to it the workers are not fit for the job and lack skills required but from Demand side the reason concluded is due to advancement in technology and industrial machines, the demand for labor is reduced drastically. For eg. If 10 men used to do a particular task , now, due to introduction of technically advanced machines, a single machine can do the work of 10 workers alone. Rising incarceration rates is also one of the reason for decline..Also, few men do not like to work in women dominated professions.

One cannot label it as good or bad. Economic conditions keeps on changing time to time. But the government should take proper measures to handle the situation in a systematic and well organised way.