1  Shigeru Fujita, “On the Causes of Declines in the Labor Force Participation Rate,” Research Rap Special Report, Federal Reserve Bank of Philadelphia, November 19, 2013. BIS central bankers’ speeches  3  There are fundamental changes in the structure of the labor market that are likely real and sustained. The progress in the labor market has led to growth in household income.
In addition to income growth, household balance sheets have strengthened as well. Overall household wealth, in nominal terms, advanced 11 percent year over year through the third quarter. The improving housing market has been an important contributor to that growth, with owners’ equity in real estate surging 29 percent in 2013 over 2012.