SOURCE: Federal Reserve Bank of Richmond

March 03, 2015 12:35 ET

Richmond Fed's Economic Quarterly Surveys the Labor Market

RICHMOND, VA--(Marketwired - Mar 3, 2015) -  In the U.S. labor market, unemployed individuals that are actively looking for work are more than three times as likely to become employed as those individuals that are not actively looking for work and are considered to be out of the labor force (OLF). Yet, on average, every month twice as many people make the transition from OLF to employment than do from unemployment to employment. In the latest issue of Economic Quarterly, Richmond Fed economists Andreas Hornstein and Marianna Kudlyak and McGill University professor Fabian Lange observe these labor market transitions and suggest that the standard unemployment rate and its extensions proposed by the Bureau of Labor Statistics are both too coarse and too narrow as measures of resource utilization in the labor market. They construct a measure of resource utilization in the labor market, a nonemployment index, that is both comprehensive and accounts for differences in labor force attachment.

You can find the full text of this article and others in the latest issue of Economic Quarterly on our website.

Also in this issue:

  • The Financial Crisis, the Collapse of Bank Entry, and Changes in the Size Distribution of Banks by Roisin McCord and Edward Simpson Prescott
  • A Business Cycle Analysis of Debt and Equity Financing by Marios Karabarbounis, Patrick Macnamara, and Roisin McCord

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. For more information, contact the Federal Reserve Bank of Richmond's Research Department--Publications at 800.322.0565 or visit

The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.

Contact Information

  • Contacts:
    John Weinberg
    Director of Research
    Federal Reserve Bank of Richmond

    Amanda Kramer
    Managing Editor
    Federal Reserve Bank of Richmond Economic Quarterly
    Email Contact