First, the labor force has been growing about twice as rapidly as a trend rate based on population growth. It is as if demand is calling forth its own supply. Part of the explanation is a rebound from a sharp decline in participation rates over 1995. Part reflects a normal cyclical rise in participation rates, delayed in this expansion.
A small part could be the early effects of BIS Review 48/1997  -6-  changes in welfare laws and previous state efforts to trim welfare roles. As a result, the recent strength of output growth has not resulted in much of an increase in resource utilization rates.