Unemployment and Labour Force Participation during the Recession

Thomas Conefrey

No 04/EL/11, Economic Letters from Central Bank of Ireland

Abstract: The slowdown in Irish economic activity since 2008 has been accompanied by a rise in unemployment and a sharp fall in the labour force participation rate. This note uses data from the Quarterly National Household Survey to examine the fall in participation among the younger age groups and finds that the majority of those who have exited the labour force but remain in Ireland have returned to education. The note draws attention to the substantial rise in broader measures of unemployment during the recession due to increases in the number of discouraged and marginally attached workers.

Date: 2011-06
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