Phelps Expresses Concern About Labor Participation Rate

The video discusses the complexities of the US labor market, highlighting the low unemployment rate but noting the lack of wage growth and inflation. It addresses the long-term issue of declining labor force participation, particularly among men, and links it to a slowdown in productivity growth since the 1970s. The video emphasizes the need to address these issues to improve labor force participation.

How has productivity growth changed since the 70s or 80s according to the text?

What is necessary to improve labor force participation to a normal level?