The Effects of Long COVID on the Labor Force Participation Rate

The aging of the US population would have reduced the labor force participation rate by 0.51% between February 2020 and April 2021. The average workweek has now returned to its pre-pandemic average, suggesting that there may not be many qualified workers who could still devote more hours to the job. Average hourly earnings for all workers were up 4.4% year over year in April, marking a 25th consecutive month where year-over-year wage growth trails CPI inflation. While everyone is very aware of the burden of higher inflation on families, corporations have been remarkably successful at holding wage growth in check.