This study uses the employment to population ratio to examine trends in the US and Eurozone (EZ) labor market. The overall trend is one of convergence. The ratio has dropped by around 5% in the US, but it has increased by around 4% in the EZ. The total change in the difference between the US and the EZ of 9%, suggests that the supposed dynamism of the US economy has declined relative to the EZ.
The study also found interesting differences between these labor markets by age and by gender. The ratio for women in the EZ increased by 10%, while the ratio was flat in the US. The ratios are now close to equal. This is because the entry of women into the US labor force began earlier than it did in the EZ.
The ratio for males fell in the US and in the EZ. However, it fell by 10% in the US and only by 4% in the EZ. The convergence between the US and the EZ is primarily the result of a larger decline in the male ratio in the US, and because the EZ caught up to the US in the employment of women. The decline of the male ratio in the US and the EZ is probably due to loss of manufacturing jobs in both economies.
The data on age related employment was also interesting. The ratio of middle aged workers was around 4% higher in the EZ, but the ratio for those over 65 was 12% higher in the US. Middle aged Americans who lost their jobs may have more difficulty in finding employment. It also appears that more Americans have continued to work after they qualify for Social Security.
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