- COVID-19 has significantly impacted the U.S. labor force, with employment decreasing by 8.5 million from February 2020 – February 2021.
- It could take over 3 years for employment to reach pre-pandemic levels, but a faster recovery could be possible if the job gains in March 2021 are sustained.
- This article explores 6 key facts about how the COVID-19 recession is affecting labor force participation.
The coronavirus outbreak that began in February 2020 sent shock waves through the U.S. labor market, pushing the unemployment rate to near record highs and causing millions to leave the workforce. A year later, a full recovery for the labor market appears distant. Employment in February 2021 was 8.5 million less than in February 2020, a loss that could take more than three years to recoup assuming job creation proceeds at roughly the same monthly rate as it did from 2018 to 2019. But a faster recovery is possible if the job gains seen in March 2021 are sustained in the coming months.
As it rippled through the economy, the COVID-19 downturn affected some Americans more than others. Unemployment climbed more sharply among women than men, a reversal from the trend in the Great Recession. Young adults, those with less education, Hispanic women and immigrants also experienced greater job losses. Unpartnered mothers saw a bigger drop in the share at work than other parents, and low-wage workers saw a particularly sharp decrease in employment.