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12 <br /> Figure 4. Unemployment and Labor Force Participation Rates in the US and North Carolina. <br /> LABORTWO PICTURES OF THE LABOR MARKET <br /> UNEMPLOYMENT RATE,% FORCE PARTICIPATION <br /> 6 64 <br /> 4 63 <br /> 12 <br /> 10 61 <br /> 60 <br /> 8 59 <br /> 6 58 <br /> 4 57 <br /> 2 56 <br /> e 55 <br /> • <br /> Source: U.S.Bureau of Labor Statistics. <br /> The underlying question is why LFPR has not fully recovered. Several answers have <br /> been offered, including fear of looking for work while the Covid-19 virus persists, financial <br /> support of jobless individuals from stimulus checks and supplemental unemployment <br /> compensation, a decline in real (inflation-adjusted)wage rates, gains in the stock market <br /> motivating retirements, and the "up-skilling" of laid-off workers. <br /> Each of these factors likely has had an impact on hiring difficulties. It is logical that <br /> some unemployed workers may not feel safe visiting potential employers while the virus is still <br /> active. The federal government has provided substantial financial help to households during the <br /> pandemic, especially those who are unemployed. Wage rates have recently fallen relative to <br /> inflation, resulting in a drop in the financial benefit from working. For individuals working at or <br /> near the minimum wage, the financial value of federal and state unemployment benefits could <br /> easily exceed earnings from working, thereby decreasing the incentive to look for work. Several <br /> studies have confirmed such as impact) However, this impact is likely short-lived as federal <br /> supplemental jobless benefits ended in early September, 2021. For older workers near <br /> retirement, the fact that the stock market is one-third higher than prior to the pandemic could <br /> certainly reduce their motivation to work. <br /> But it's the last factor—the up-skilling of laid-off workers—that could be the most <br /> significant for the labor market. Surveys show that a large percentage of workers—especially <br /> young workers—have expressed a goal of changing their career track as a result of the <br /> 1 Scott Sumner, "Unemployment Insurance Reduces Employment," https://www.econlib.org/unemployment- <br /> insurance-reduces-employment/. <br /> 6 <br />