The labour force participation rate in the euro area has risen in recent years while it has declined in the US, significantly narrowing the gap between the two. This column analyses how demographic shifts are influencing the rate in both economies and finds that demographic changes are pushing participation lower, while education is an offsetting factor. The key distinction lies in within-group changes: in the euro area, these changes have significantly boosted participation, whereas in the US, they have had a small negative effect.



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