The United States will have fewer workers in 2020 than it did in 2017, according to a new analysis from the Economic Policy Institute (EPI), a nonpartisan think tank.
That means the U.S. economy will grow by 1.2 percent instead of the 2.1 percent it saw in 2020.
The labor force participation rate, the percentage of workers who are either employed or looking for work, will rise to 73.4 percent from 71.4 in 2020, EPI said.
The labor force will grow 4.4 million more people by 2021, which would be the highest increase since 1965, according the analysis.
In 2018, the labor participation rate was 68.6 percent.
The economy grew by a stronger-than-expected 2.7 percent in the fourth quarter of 2021.
This is a huge uptick from the previous three quarters of the year, when the labor market remained sluggish and the economy slowed.
In the fourth and fifth quarters of 2021, labor participation declined for two consecutive quarters and is still below its previous low point of 70.6 in February 2021.
In the fourth-quarter of 2020, the rate was 66.5 percent.
The labor participation drop in the first three quarters was due in part to a temporary drop in nonfarm payrolls, which had been the biggest source of labor force growth in the prior three quarters.
The drop in labor force includes both people working part time and people working full time.
As a result, nonfarm employment dropped by 4.1 million workers in the third quarter and by 3.1 and 1.7 million in the second and third quarters, respectively, the EPI said.
In addition, the number of people without a high school diploma rose by 2.4 percentage points to 1.9 million.
There were 1.4 more jobs available in the labor supply in the latest three quarters, and that added up to a larger number of jobs available for people with no college degrees.
It is not clear whether the drop in jobs for people without high school diplomas is related to the Great Recession, the first recession since the late 1990s, the recession that took hold in the mid-2000s, or the slowdown in manufacturing.
In any case, the unemployment rate was at its lowest level in 20 years in the last quarter of 2019, according, according EPI.
“In the last three quarters the labor-force participation rate has been steadily declining,” said EPI’s Heidi Shierholz.
“The economy is still growing at a very strong pace.
The problem with this is that it has been slowing down over the past year, so we are still not seeing enough new jobs created.
If the labor economy continues to slow down, there will be a lot more people out of work in 2020.”
More than one-third of people in the U