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CBO Employment Shortfall Millions of The 2016 Economic Outlook in 17 Slides

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Employment Shortfall

Millions of People

I0 ' Historical 3 Projected
8 F I From
6 F I
4 -
From Labor Force
2 — I l Participation
‘i INNIII-I-----II. ..
0 .
-2 ~ I I I
2008 2011 2014 2017 2020

The employment shortfall is the number of people who would be employed ifthe unemployment rate
equaled its natural rate (that arising from all sources except fluctuations in the overall demand for goods
and services) and ifthe labor force participation rate equaled its potential rate. The employment shortfall has

dropped sharply since 2009 because of a decline in the unemployment rate; it currently remains elevated,

however, mostly from low labor force participation. (0