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The broader point is that there has emerged a secular divergence between Euro area labor force participation and that of the US.
What's going on? Europe and the United States face some of the same demographic and economic forces. Populations are aging on both sides of the Atlantic. Many workers in Europe, too, have stopped looking for work, discouraged by lack of opportunities. There is, however, one big difference. In the euro area, the working rate of older women is still much lower than it is in the United States. Almost half of American women over 45 are in the labor market, compared to fewer than 40 percent in the euro zone. And European women are picking up the slack. So despite a severe economic downturn, the share of older women in the labor pool has been growing at a robust clip.
There is, however, one big difference. In the euro area, the working rate of older women is still much lower than it is in the United States. Almost half of American women over 45 are in the labor market, compared to fewer than 40 percent in the euro zone. And European women are picking up the slack. So despite a severe economic downturn, the share of older women in the labor pool has been growing at a robust clip.
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