This is because some people, particularly seniors, who are more vigilant against COVID-19, have been reluctant to return to the 1/4  BIS central bankers' speeches  labor market. In the United States, this phenomenon has been called the “Great Retirement” or “Great Resignation.” Such a decline in the labor force participation rate has not been that evident in Europe or Japan.
The third factor is a sectoral shift in demand, which is typical in the United States (Chart 4). The spread of COVID-19 has brought about a major shift in demand from services to goods, and an excess supply of face-to-face services and excess demand for automobiles and digital-related goods have been particularly notable.