Monthly Labor Review • March 2010 3

U.S. Labor Market, 2009

The labor market in 2009:

recession drags on

In 2009, the unemployment rate reached double digits, 

the employment-population ratio fell sharply, and the numbers 

of unemployed, discouraged workers, and involuntary part-timers rose 

Steven F. Hipple

Steven F. Hipple is an economist 

in the Division of Labor Force 

Statistics in the Office of Employment and Unemployment 

Statistics of the Bureau of Labor 

Statistics. E-mail: 

hipple.steve@bls.gov

The United States economy was in 

a recession when 2009 began. The 

National Bureau of Economic Research (NBER) had designated December 

2007 as the beginning of the recession, and 

labor market conditions had deteriorated 

throughout 2008.1 The financial crisis in 

the fall of 2008 had resulted in steep declines in employment and sharp increases 

in unemployment that carried into the first 

part of 2009. Although job losses moderated as the year progressed, the number of 

unemployed people age 16 and over stood 

at 15.4 million in the fourth quarter of 

2009. The unemployment rate, already high 

by historical standards at the beginning of 

the year, reached 10.0 percent during the 

last quarter of 2009, higher than at any 

time since the early 1980s. (See chart 1.) 

The unemployment rate for men, 11.2 percent in the fourth quarter of 2009, was the 

highest in the history of the series, which 

began in 1948. 

The number of employed people age 16 

and over, as measured by the Current Population Survey (CPS), was 138.1 million 

in the fourth quarter of 2009, 5.8 million 

lower than a year earlier.2 The over-theyear percentage decline in employment 

(4.0 percent) was the largest on record. (For 

a comparison of the employment measures 

available from the CPS with those from the 

Current Employment Statistics survey, see 

the box on page 5.) Reflecting the sharp decrease in employment, the employment-population ratio dropped by 2.9 percentage points 

over the year, to 58.4 percent in the fourth 

quarter of 2009. (See chart 2.) The decline in 

the employment-population ratio during 2009 

was the largest over-the-year decrease in the 

history of the series, which dates back to 1948. 

Although unemployment rose and employment declined in 2009, the decrease in labor 

force participation was relatively small.3 The 

labor force participation rate fell by 1.0 percentage point over the year, to 64.9 percent in the 

fourth quarter of 2009. 

Unemployment levels and rates among people in 

the central working age group (25 to 54 years) rose 

sharply during 2009; men in this age group experienced larger increases in unemployment and greater 

declines in employment than did their female counterparts. In 2009, more than two-thirds of the 

labor force was composed of people in the central working age group (25 to 54 years). In the 

fourth quarter of 2009, the unemployment rate 

for this group was 9.0 percent, up from 6.0 percent in the fourth quarter of 2008; the fourthquarter 2009 rate was the highest in the history 

of the series, which began in 1948. The number 

of unemployed people age 25 to 54 years, 9.3 

million in the fourth quarter of 2009, had risen 

by 3.1 million from the previous year. Among 

25- to 54-year-olds, the unemployment rate 

for men jumped by 3.6 percentage points over 
U.S. Labor Market, 2009

4 Monthly Labor Review • March 2010

the year, to 9.9 percent in the fourth quarter of 2009, while 

the rate for women increased by 2.4 percentage points, to 7.9 

percent. (See table 1.)

During 2009, employment among people age 25 to 54 

dropped by 4.0 million, hitting 94.1 million in the fourth 

quarter. As one might expect, the large increase in the number 

of unemployed men coincided with a significant decrease in 

the number who were employed and a drop in their employment-population ratio. Employment among men in the 25- 

to 54-year-old group declined by 2.5 million, and this decline 

accounted for more than three-fifths of the total decline in 

the employment of people age 25 to 54. By the fourth quarter 

of 2009, the employment-population ratio for men age 25 to 

54, at 80.6 percent, was the lowest on record and had fallen 

by 3.9 percentage points over the year. By comparison, the 

number of employed women age 25 to 54 fell by 1.5 million over the year, and their employment-population ratio fell 

by 2.3 percentage points, to 69.4 percent. Much of the large 

decline in the employment of men can be attributed to their 

concentration in more cyclically sensitive occupations, such as 

construction and extraction occupations and production 

occupations.4

In 2009, young workers were affected by poor labor market conditions more than were workers age 55 and over. The number of employed teenagers—people age 16 to 19—fell by 

864,000 over the year, and their employment-population 

ratio fell by 4.8 percentage points—to 26.1 percent. By 

the end of 2009, the teen employment-population ratio 

was the lowest in the history of the series, which began in 

1948. Many teens withdrew from the labor force in 2009; 

the teen labor force participation rate fell by 3.1 percentage points to a record-low 35.8 percent. The number of 

unemployed teenagers—those without a job but actively 

looking for work—rose by 289,000, raising the teen unemployment rate from 20.5 percent in the fourth quarter 

of 2008 to 27.2 percent a year later, its highest level on record. (See table 1.) Teen employment losses during 2009 

were concentrated in retail trade industries.

The decrease in teen employment reflects a marked decline in the demand for young workers—a phenomenon 

that is typical during recessions. Teens generally have less 

experience and fewer skills than do older workers, and, during labor market downturns, teens are often the first to be 

released when employers cut payrolls. The sharp decline in 

labor force participation among teens in 2009 suggests that 

many of these youth have reacted to such difficulties by 

leaving the labor force, possibly to pursue higher education. 

Indeed, the proportion of high school graduates who enroll 

in college continued to rise. In addition, teens may be fac12

10

8

6

4

2

0

 Chart 1. Unemployment rate for persons 16 years and older, seasonally adjusted, quarterly averages, 

1969–2009

Percent

12

10

8

6

4

2

0

Percent

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined 

an endpoint for the recession that began in December 2007.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008
Monthly Labor Review • March 2010 5

ing greater competition from other groups for entry-level 

positions.5

The employment of young adults (age 20 to 24) also 

declined in 2009, falling by 1.0 million. The proportion of 

these young adults who were employed fell by 5.5 percentage points, to 60.2 percent. The unemployment rate for 

people age 20 to 24 rose during 2009, increasing by 4.2 

percentage points, to 15.7 percent. 

Adults age 55 and over were not immune to the effects 

of a recession: their unemployment rate rose by 2.3 percentage points, reaching 7.1 percent in the fourth quarter of 2009.6 However, in contrast to the employment of 

younger workers, employment among adults age 55 and 

over edged up in 2009, and their labor force participation 

rate held steady at about 40 percent. (See table 1.) 

All the major race and ethnicity groups were adversely affected 

by weak labor market conditions. Unemployment rates 

for all the major race and ethnicity groups rose sharply in 

2009, and, by the fourth quarter, rates for all groups were 

at or near record highs. The over-the-year increases in unemployment rates were largest for Blacks and Hispanics, 

whose rates jumped by 4.2 and 3.9 percentage points, respectively, to 15.8 percent for Blacks and 12.9 percent for 

Hispanics. The fourth-quarter 2009 unemployment rate 

for Whites, 9.2 percent, was 2.9 percentage points higher 

The Bureau of Labor Statistics produces two monthly 

employment series that are independently obtained: the 

estimate of total nonfarm jobs, derived from the Current 

Employment Statistics (CES) survey, also called the establishment or payroll survey; and the estimate of total 

civilian employment, based on the Current Population 

Survey (CPS), also called the household survey. The two 

surveys use different definitions of employment, as well 

as different survey and estimation methods. The CES 

survey is a survey of employers that provides a measure 

of the number of payroll jobs in nonfarm industries. The 

CPS is a survey of households that provides a measure 

of employed people age 16 years and older in the civilian noninstitutional population. Employment estimates 

from the CPS give information about workers in both the 

agricultural and nonagricultural sectors and in all types of 

work arrangements: workers with wage and salary jobs 

(including employment in a private household), those engaging in self-employment, and those doing unpaid work 

for at least 15 hours a week in a business or farm operated 

by a family member. CES payroll employment estimates 

are restricted to nonagricultural wage and salary jobs and 

exclude private household workers. As a result, employment estimates from the CPS are higher than those from 

the CES survey. In the CPS, however, employed people 

are counted only once, regardless of whether they hold 

more than one job during the survey reference period. By 

contrast, because the CES survey counts the number of 

jobs rather than the number of people, each nonfarm job 

is counted once, even when two or more jobs are held by 

the same person.

The reference periods for the surveys also differ. In 

the CPS, the reference period is the calendar week that 

includes the 12th day of the month. In the CES survey, 

employers report the number of workers on their payrolls 

for the pay period that includes the 12th of the month. 

Because pay periods vary in length among employers and 

may be longer than 1 week, the CES employment estimates can reflect longer reference periods.

For purposes of comparison, however, some adjustments can be made to CPS employment estimates to 

make them more similar in definitional scope to CES 

employment figures. BLS routinely carries out these adjustments to evaluate how the two employment series are 

tracking. The long-term trends in the two surveys’ employment measures are quite comparable. Nonetheless, 

throughout the history of the surveys, there have been 

periods when the short-term trends diverged or when 

growth in one series significantly outpaced growth in 

the other. For example, following the end of the 2001 

recession, CPS employment began to trend upward while 

CES employment continued to decline for a number of 

months.

BLS publishes a monthly report with the latest trends 

and comparisons of employment as measured by the CES

survey and the CPS. (See “Employment from the BLS

household and payroll surveys: summary of recent trends” 

(Bureau of Labor Statistics), on the Internet at www.bls.

gov/web/ces_cps_trends.pdf.) This report includes a 

summary of possible causes of differences in the surveys’ 

employment trends, as well as links to additional research 

on the topic.

The CPS and the CES survey
U.S. Labor Market, 2009

6 Monthly Labor Review • March 2010

than a year earlier. The unemployment rate for Asians in 

the last quarter of 2009, 7.7 percent (not seasonally adjusted), had risen by 3.1 percentage points over the year. 

(See table 1.)

Employment among all the major race and ethnicity 

groups fell sharply during 2009. The number of employed 

Blacks fell by 5.7 percent; this compares with a decline 

of 3.8 percent for Whites and 2.6 percent for Hispanics. 

For all three groups, the over-the-year percentage declines 

in employment were the largest on record. For Asians, 

employment fell by 4.2 percent during 2009 (not seasonally adjusted). The employment decrease among Blacks in 

2009 was concentrated in manufacturing. A large proportion (two-thirds) of the employment decline among Hispanics was in construction.

Reflecting the large declines in employment among 

the race and ethnicity groups, the employment-population ratios for all these groups dropped sharply during 

2009. The employment-population ratio for Blacks fell 

by 3.9 percentage points, hitting 52.1 percent in the 

fourth quarter of 2009. The ratio for Hispanics declined 

by 3.0 percentage points, to 58.8 percent, and the ratio 

for Whites fell by 2.7 percentage points, to 59.3 percent. During 2009, the employment-population ratio for 

Asians declined by 3.0 percentage points, to 60.2 percent 

(not seasonally adjusted) in the last quarter of the year. 

In 2009, less educated workers were affected by poor labor 

market conditions more than their counterparts with higher 

levels of education. People with less education started 

the year 2009 with higher unemployment rates and experienced larger increases in unemployment than did their 

more educated counterparts. Among people age 25 and 

over, the unemployment rate for those with less than a 

high school diploma jumped by 4.5 percentage points, 

reaching 15.3 percent in the fourth quarter of 2009. The 

over-the-year increases in unemployment rates were also 

large for high school graduates without any college education and for those with some college or an associate's 

degree, whose rates increased by 3.6 and 3.4 percentage 

points, respectively, to 10.7 percent for high school graduates without any college and 9.0 percent for those with 

some college. Among college graduates, the unemployment rate rose by 1.5 percentage points, to 4.9 percent. 

(See chart 3.) 

The employment-population ratio dropped at all levels of educational attainment in 2009. The over-the-year 

decline was largest for people with some college or an associate’s degree, whose ratio fell by 3.3 percentage points, 

to 64.3 percent in the fourth quarter of 2009. During 

 Chart 2. Labor force participation rate and employment-population ratio, seasonally adjusted, quarterly 

averages, 1999–2009

Percent

70

68

66

64

62

60

58

56

Percent

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined 

an endpoint for the recession that began in December 2007.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Labor force participation rate

Employment-population ratio

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

70

68

66

64

62

60

58

56
Monthly Labor Review • March 2010 7

Employment status of the civilian noninstitutional population 16 years and older, by age and selected 

characteristics, quarterly averages, seasonally adjusted, 2008–09

[Levels in thousands]

Characteristic

2008 2009 Change, 

quarter IV 

2008 to

quarter IV 

2009

Quarter IV Quarter I Quarter II Quarter III Quarter IV

Total, 16 years and older

Civilian labor force ...................................................................... 154,653 154,235 154,811 154,235 153,544 –1,109

 Participation rate................................................................ 65.9 65.7 65.7 65.3 64.9 –1.0

 Employed.................................................................................. 143,924 141,587 140,459 139,339 138,138 –5,786

 Employment-population ratio ...................................... 61.3 60.3 59.7 59.0 58.4 –2.9

 Unemployed ............................................................................ 10,729 12,648 14,352 14,895 15,406 4,677

 Unemployment rate.......................................................... 6.9 8.2 9.3 9.7 10.0 3.1

Both sexes, 16 to 19 years

Civilian labor force ...................................................................... 6,660 6,573 6,531 6,368 6,086 –574

 Participation rate................................................................ 38.9 38.5 38.3 37.4 35.8 –3.1

 Employed.................................................................................. 5,297 5,155 5,024 4,748 4,433 –864

 Employment-population ratio ...................................... 30.9 30.2 29.4 27.9 26.1 –4.8

 Unemployed ............................................................................ 1,363 1,418 1,507 1,620 1,652 289

 Unemployment rate.......................................................... 20.5 21.6 23.1 25.4 27.2 6.7

Both sexes, 20 to 24 years

Civilian labor force ...................................................................... 15,189 15,070 15,130 14,966 14,732 –457

 Participation rate................................................................ 74.2 73.8 73.9 72.8 71.4 –2.8

 Employed.................................................................................. 13,449 13,077 12,870 12,699 12,416 –1,033

 Employment-population ratio ...................................... 65.7 64.1 62.8 61.8 60.2 –5.5

 Unemployed ............................................................................ 1,740 1,993 2,259 2,267 2,316 576

 Unemployment rate.......................................................... 11.5 13.2 14.9 15.1 15.7 4.2

Both sexes, 25 to 54 years

Civilian labor force ...................................................................... 104,376 103,736 104,101 103,934 103,413 –963

 Participation rate................................................................ 82.9 82.7 82.9 82.7 82.3 –.6

 Employed.................................................................................. 98,159 96,167 95,462 94,817 94,127 –4,032

 Employment-population ratio ...................................... 78.0 76.6 76.1 75.5 74.9 –3.1

 Unemployed ............................................................................ 6,217 7,570 8,639 9,117 9,286 3,069

 Unemployment rate.......................................................... 6.0 7.3 8.3 8.8 9.0 3.0

Men, 25 to 54 years

Civilian labor force ...................................................................... 56,116 55,609 55,905 56,006 55,604 –512

 Participation rate................................................................ 90.2 89.6 90.1 90.1 89.5 –.7

 Employed.................................................................................. 52,561 51,150 50,678 50,427 50,078 –2,483

 Employment-population ratio ...................................... 84.5 82.5 81.7 81.2 80.6 –3.9

 Unemployed ............................................................................ 3,555 4,459 5,227 5,579 5,526 1,971

 Unemployment rate.......................................................... 6.3 8.0 9.3 10.0 9.9 3.6

Women, 25 to 54 years

Civilian labor force ...................................................................... 48,260 48,127 48,196 47,928 47,809 –451

 Participation rate................................................................ 75.8 75.9 76.0 75.5 75.3 –.5

 Employed.................................................................................. 45,599 45,017 44,784 44,390 44,050 –1,549

 Employment-population ratio ...................................... 71.7 71.0 70.6 69.9 69.4 –2.3

 Unemployed ............................................................................ 2,662 3,111 3,412 3,538 3,760 1,098

 Unemployment rate.......................................................... 5.5 6.5 7.1 7.4 7.9 2.4

Both sexes, 55 years and older

Civilian labor force ...................................................................... 28,443 28,704 29,065 29,140 29,289 846

 Participation rate................................................................ 39.8 39.9 40.1 40.0 39.9 .1

 Employed.................................................................................. 27,072 27,056 27,114 27,158 27,203 131

 Employment-population ratio ...................................... 37.9 37.6 37.5 37.3 37.0 –.9

 Unemployed ............................................................................ 1,370 1,648 1,951 1,982 2,085 715

 Unemployment rate.......................................................... 4.8 5.7 6.7 6.8 7.1 2.3

See notes at end of table.

Table 1.
U.S. Labor Market, 2009

8 Monthly Labor Review • March 2010

2009, the employment-population ratio for people with a 

high school diploma but no higher education fell by 3.0 

percentage points, to 55.0 percent, and the ratio for those 

with less than a high school diploma fell by 2.9 percentage points, to 39.3 percent. The ratio for college graduates 

fell to 73.6 percent, 1.5 percentage points lower than a 

year earlier. 

The severe labor market downturn has caused heightened interest in the job market prospects of young adults, 

especially those with recent college degrees.7 The following text tabulation shows unemployment rates (not seasonally adjusted) by educational attainment for people age 

20 to 24 who were not enrolled in school. 

 Unemployment rates (in percent)

 Quarter IV, Quarter IV, 

 2008 2009 Change

Less than a high school 

 diploma ........................ 25.2 27.8 2.6

High school diploma, 

 no college ..................... 13.9 21.0 7.1

Some college or associate's

 degree ........................... 8.9 13.1 4.2

Bachelor’s degree or 

 higher........................... 6.4 8.6 2.2

In the fourth quarter of 2009, among people age 20 

Continued—Employment status of the civilian noninstitutional population 16 years and older, by age and 

selected characteristics, quarterly averages, seasonally adjusted, 2008-09

[Levels in thousands]

Characteristic

2008 2009 Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV Quarter I Quarter II Quarter III Quarter IV

White

Civilian labor force ...................................................................... 125,968 125,673 126,174 125,844 125,143 –825

 Participation rate................................................................ 66.2 66.0 66.2 65.9 65.3 –.9 

 Employed.................................................................................. 118,017 116,266 115,483 114,661 113,587 -4,430

 Employment-population ratio ...................................... 62.0 61.1 60.6 60.0 59.3 –2.7

 Unemployed ............................................................................ 7,952 9,406 10,691 11,182 11,556 3,604

 Unemployment rate.......................................................... 6.3 7.5 8.5 8.9 9.2 2.9

Black or African American

Civilian labor force ...................................................................... 17,769 17,659 17,725 17,567 17,592 –177

 Participation rate................................................................ 63.4 62.9 62.9 62.1 61.9 –1.5

 Employed.................................................................................. 15,703 15,312 15,078 14,906 14,808 –895

 Employment-population ratio ...................................... 56.0 54.5 53.5 52.7 52.1 –3.9

 Unemployed ............................................................................ 2,066 2,347 2,648 2,661 2,784 718

 Unemployment rate.......................................................... 11.6 13.3 14.9 15.1 15.8 4.2

Asian1

Civilian labor force ...................................................................... 7,166 7,073 7,207 7,248 7,098 –68

 Participation rate................................................................ 66.2 65.7 66.4 66.6 65.3 –.9

 Employed.................................................................................. 6,839 6,614 6,689 6,686 6,549 –290

 Employment-population ratio ...................................... 63.2 61.5 61.7 61.4 60.2 –3.0

 Unemployed ............................................................................ 326 460 517 561 549 223

 Unemployment rate.......................................................... 4.6 6.5 7.2 7.7 7.7 3.1

Hispanic or Latino ethnicity

Civilian labor force ...................................................................... 22,111 22,120 22,404 22,434 22,487 376

 Participation rate................................................................ 67.9 68.1 68.4 67.9 67.5 –.4

 Employed.................................................................................. 20,114 19,723 19,687 19,585 19,586 –528

 Employment-population ratio ...................................... 61.8 60.7 60.1 59.3 58.8 –3.0

 Unemployed ............................................................................ 1,997 2,397 2,716 2,850 2,901 904

 Unemployment rate.......................................................... 9.0 10.8 12.1 12.7 12.9 3.9

1 Data for Asians are not seasonally adjusted.

NOTE: Beginning in 2008, data reflect revised population controls. Estimates for race and Hispanic ethnicity do not sum to totals because data are

not presented for all races and because persons of Hispanic ethnicity 

may be of any race and are also included in the race groups.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 1.
Monthly Labor Review • March 2010 9

to 24, unemployment rates ranged from a low of 8.6 percent for people with a college degree to a high of 27.8 

percent for those with less than a high school diploma. 

The deterioration in labor market conditions in 2009 affected young adults at all levels of educational attainment. 

The unemployment rates of all education-based groups of 

people age 20 to 24 rose by 2 percentage points or more 

between the fourth quarter of 2008 and the fourth quarter 

of 2009. The largest increase—7.1 percentage points—occurred for people with a high school diploma but no college education. Although the rise in the unemployment 

rate for people with less than a high school diploma was 

relatively small, this group continued to register the highest unemployment rate of all the educational attainment 

categories.

The numbers of job losers and long-term unemployed rose 

sharply in 2009. As is typical during recessions, nearly 

all of the increase in unemployment during 2009 occurred among people who had recently lost their jobs. 

The number of people who were unemployed because 

they had lost their jobs rose by 3.7 million in 2009, to 

10.0 million. (See table 2.) The majority of the over-theyear rise in job losers occurred in the first half of 2009. 

There are two major subcategories of job losers—those 

on temporary layoff (expecting recall) and those who are 

not on temporary layoff. The latter subcategory is further 

divided into two groups: permanent job losers and persons who completed temporary jobs. The vast majority 

of the increase among those not on temporary layoff occurred among permanent job losers, who rose in number 

by 3.1 million to reach 6.9 million in the fourth quarter 

of 2009. 

Also contributing to the over-the-year rise in total 

unemployment was an increase of 621,000 in the number of unemployed reentrants; their number rose to 3.3 

million in the fourth quarter of 2009. The number of unemployed new entrants to the labor force, 1.2 million in 

the fourth quarter of 2009, had risen by 424,000 over the 

year. In 2009, there was little change in the number of 

unemployed job leavers—people who quit or otherwise 

terminated their employment voluntarily and immediately began looking for work. (See chart 4 and table 2.)

About 5.9 million people had been jobless for at least 

27 weeks as of the last quarter of 2009, an increase of 3.5 

million from a year earlier.8 These long-term unemployed 

people made up a much larger proportion of the total unemployed in 2009 than they had the previous year: 38.2 

percent in the fourth quarter of 2009, up from 22.2 percent a year earlier. (See chart 5.) By the end of 2009, the 

 Chart 3. Unemployment rate by educational attainment for persons 25 years and older, seasonally adjusted, 

quarter IV 2008 and quarter IV 2009

Percent

16

14

12

10

8

6

4

2

0

Percent

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Total, 25 and older Less than a high school High school diploma, Some college or Bachelor’s degree

diploma no college associate’s degree or higher

16

14

12

10

8

6

4

2

0

Quarter IV 2008

Quarter IV 2009
U.S. Labor Market, 2009

10 Monthly Labor Review • March 2010

share of the unemployed accounted for by the long-term 

jobless was the largest on record. Moreover, the number 

of people unemployed 52 weeks or longer—3.2 million 

in the fourth quarter of 2009—was 21⁄2 times higher than 

the level a year earlier. 

The sharp rise in unemployment is reflected in labor force status flows. Each month, BLS reports on the number of 

people employed, unemployed, or not in the labor force 

as measured by the CPS. The net changes in the number of people employed and unemployed from month 

to month are important gauges of the health of the U.S. 

labor market. A great deal more churning underlies the 

relatively small net changes that typically occur. Millions 

of people move between employment and unemployment 

each month, and millions of others leave the labor market altogether. Labor force flows data show that, since the 

onset of the recession, 16.6 million people, representing 7 

percent of the population, changed their labor force status 

in an average month.9

A greater understanding of the increase in unemployment in 2009 can be obtained by examining the updated 

status (employed, unemployed, or not in the labor force) 

of people who were unemployed. Chart 6 shows the proUnemployed persons by reason and duration of unemployment, quarterly averages, seasonally adjusted, 2008–09

[Levels in thousands]

Reason and duration

2008 2009 Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV Quarter I Quarter II Quarter III Quarter IV

Reason for unemployment 

Job losers and persons who completed 

temporary jobs............................................................. 6,253 7,855 9,286 9,866 9,976 3,723

 On temporary layoff................................................... 1,441 1,523 1,740 1,764 1,592 151

 Not on temporary layoff........................................... 4,812 6,332 7,545 8,102 8,383 3,571

 Permanent job losers............................................... 3,725 5,056 6,101 6,641 6,872 3,147

 Persons who completed temporary jobs......... 1,116 1,355 1,382 1,393 1,485 369

Job leavers......................................................................... 956 872 873 862 923 –33

Reentrants.......................................................................... 2,717 2,907 3,216 3,285 3,338 621

New entrants..................................................................... 794 896 955 1,075 1,218 424

Percent distribution:

Job losers and persons who completed 

temporary jobs............................................................. 58.3 62.7 64.8 65.4 64.5 6.2

 On temporary layoff................................................... 13.4 12.2 12.1 11.7 10.3 –3.1

 Not on temporary layoff........................................... 44.9 50.5 52.7 53.7 54.2 9.3

Job leavers......................................................................... 8.9 7.0 6.1 5.7 6.0 –2.9

Reentrants.......................................................................... 25.3 23.2 22.4 21.8 21.6 –3.7

New entrants..................................................................... 7.4 7.2 6.7 7.1 7.9 .5

Duration of unemployment

Less than 5 weeks............................................................ 3,234 3,437 3,218 3,037 2,945 –289

5 to 14 weeks.................................................................... 3,319 3,872 4,085 3,823 3,558 239

15 weeks or longer.......................................................... 4,210 5,315 7,051 8,024 8,916 4,706

 15 to 26 weeks................................................................ 1,844 2,350 2,986 2,877 3,033 1,189

 27 weeks or longer........................................................ 2,365 2,965 4,065 5,148 5,884 3,519

Mean duration, in weeks.............................................. 19.4 20.2 23.0 25.7 28.3 8.9

Median duration, in weeks........................................... 10.3 11.3 15.4 16.4 19.9 9.6

Percent distribution:

Less than 5 weeks............................................................ 30.1 27.2 22.4 20.4 19.1 –11.0

5 to 14 weeks.................................................................... 30.8 30.7 28.5 25.7 23.1 –7.7

15 weeks or longer.......................................................... 39.1 42.1 49.1 53.9 57.8 18.7

 15 to 26 weeks................................................................ 17.1 18.6 20.8 19.3 19.7 2.6

 27 weeks or longer........................................................ 22.2 23.5 28.3 34.6 38.2 16.0

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 2.
Monthly Labor Review • March 2010 11

portion of unemployed people who found employment, 

the share remaining unemployed, and the proportion who 

left the labor force. The data indicate that, from the fourth 

quarter of 2008 to the fourth quarter of 2009, unemployed 

people continued to be less likely to find employment and 

much more likely to remain unemployed. The share of 

unemployed people who remained unemployed from one 

month to the next rose from 58.2 percent in December 

2008 to 65.7 percent in December 2009, the highest proportion in the history of the series, which began in 1990. 

The sharp increase in the proportion of people remaining 

unemployed during 2009 coincides with a sharp rise in the 

share of the unemployed accounted for by the long-term 

unemployed (those unemployed for 27 weeks or more). 

During 2009, the proportion of unemployed people finding employment or exiting the labor force continued to 

trend down. In fact, at the end of 2009, the likelihood that 

an unemployed person would find employment was the 

lowest on record. 

The number of people who worked part time for economic reasons rose in the first half of 2009 and then leveled off. The 

number of people who worked part time for economic 

reasons, a measure also known as involuntary part time, 

was 9.2 million in the fourth quarter of 2009, 1.8 million higher than a year earlier. (See chart 7.) Involuntary 

part-time workers are people who would prefer to work 

full time but cannot because of slack work or business 

conditions, or because they are only able to find parttime work. Involuntary part-time employment was on an 

upward trend during all of 2008, a trend that continued 

through the first half of 2009. As is typical during job 

market downturns, most of the rise in involuntary part 

time work occurred among those who cited slack work or 

business conditions as their reason for working part time 

rather than those who could find only part-time work.10

In 2009, the number of people who wanted a job but were not 

in the labor force increased, as did the number of discouraged 

workers. The category “not in the labor force” consists 

of people who are neither employed nor unemployed. In 

the fourth quarter of 2009, there were 83.5 million people 

who were not in the labor force. (See table 3.) Of those 

who were not in the labor force, about two in five were 

age 65 or over. 

The number of people who were not in the labor force 

but who wanted a job—though they were not currently 

looking for one—was 5.7 million in the fourth quarter of 

2009, up by 707,000 from a year earlier. Among those 5.7 

million, 2.4 million had looked at some time in the previ-

 Chart 4. Reasons for unemployment, seasonally adjusted, quarterly averages, 1990–2009

Thousands of persons

12,000

10,000

8,000

6,000

4,000

2,000

0

Thousands of persons

Job losers

Reentrants

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined 

an endpoint for the recession that began in December 2007.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Job leavers

New entrants

12,000

10,000

8,000

6,000

4,000

2,000

0
U.S. Labor Market, 2009

12 Monthly Labor Review • March 2010

ous 12 months and were available to work. This group is 

referred to as "persons marginally attached to the labor 

force."11 In the fourth quarter of 2009, the number of such 

people was 563,000 higher than it had been a year earlier. 

Some of the marginally attached were not looking for a 

job at the time of the survey specifically because they believed that there were no jobs available for them. These 

"discouraged workers" numbered 866,000 in the fourth 

quarter of 2009, up by 288,000 from a year earlier.

All of the alternative measures of labor underutilization rose 

in 2009. A number of indicators of labor underutilization are constructed from CPS data. Known as U-1 

through U-6, these measures provide information on the 

degree to which labor resources are underutilized.12 Like 

the unemployment rate, the other measures tend to show 

cyclical patterns. U-1 shows the number of people unemployed 15 weeks or longer as a percent of the labor force, 

and U-2 presents job losers and persons who completed 

temporary jobs as a percent of the labor force. U-3 is the 

official unemployment rate. Measures U-4 through U-6 

include increasingly broader groups of people who may be 

underutilized in the labor market. U-4 adds discouraged 

workers to U-3, U-5 adds all other persons marginally attached to the labor force to U-4, and U-6 adds involuntary part-time workers to U-5. In 2009, U-4 rose to 10.5 

percent, U-5 to 11.4 percent, and U-6 to 17.3 percent. By 

the end of 2009, the U-4, U-5, and U-6 measures were the 

highest in the history of the series, which began in 1994. 

(See chart 8.)

Employment in nearly all occupational groups continued to fall 

in 2009; unemployment rates for all these groups rose sharply 

over the year. During 2009, nearly all of the occupational 

groups shown in table 4 recorded large losses in employment. Among the occupational groups, the largest employment declines in 2009 occurred in sales and office occupations—1.0 million in office and administrative support 

occupations and 955,000 in sales and related occupations. 

(The data in this section are not seasonally adjusted.) Large 

employment declines also occurred in construction and extraction occupations and in production occupations, which 

dropped by 942,000 and 1.1 million, respectively, by the last 

quarter of 2009. Among the occupational groups shown in 

table 4, construction and extraction occupations and production occupations recorded the largest over-the-year percentage declines in employment—11.3 and 12.4 percent, 

respectively. Employment in management, professional, 

and related occupations fell by 644,000, with a decline in 

management, business, and financial operations occupa-

 Chart 5. Long-term unemployed as a percent of total unemployed, seasonally adjusted, quarterly averages, 

1990–2009

Percent

45

40

35

30

25

20

15

10

5

0

Percent

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined an 

endpoint for the recession that began in December 2007.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

45

40

35

30

25

20

15

10

5

0
Monthly Labor Review • March 2010 13

 Chart 6. Percent of the unemployed finding employment, remaining unemployed, or leaving the labor force, 

seasonally adjusted 3-month moving average, April 1990 to December 2009

Percent Percent

Leaving the labor force

Remaining unemployed

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined an 

endpoint for the recession that began in December 2007.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0

Finding employment

Thousands of persons Thousands of persons

Part time for economic reasons

 Chart 7. Persons employed part time for economic reasons, seasonally adjusted, quarterly averages, 

1969–2009

9,600

8,400

7,200

6,000

4,800

3,600

2,400

1,200

0

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined 

an endpoint for the recession that began in December 2007. Beginning in 1994, data are affected by the redesign of the Current Population Survey 

(denoted by the vertical black line) and therefore are not strictly comparable with data from previous years.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Slack work

Could only find part-time work

9,600

8,400

7,200

6,000

4,800

3,600

2,400

1,200

0
U.S. Labor Market, 2009

14 Monthly Labor Review • March 2010

tions more than offsetting an increase among professional 

and related occupations. Within service occupations, small 

employment increases in health care support occupations (51,000) and personal care and service occupations 

(77,000) were more than offset by a decline of 278,000 in 

food preparation occupations. 

For the majority of occupational groups, employment 

losses among men were larger than those of women. Employment among men in management, business, and financial operations occupations fell by 742,000, accounting for 

nearly two-thirds of the job losses in those occupations. In 

construction and extraction occupations, where men make 

up the vast majority of workers, men’s employment fell by 

920,000; this decline represents virtually all the losses in 

those occupations. The employment of men in production 

occupations fell by 649,000, the majority of losses in those 

occupations. In office and administrative support occupations, a group in which women make up the majority of 

workers, women’s employment declined by 709,000. Both 

men and women had employment increases in professional 

and related occupations, with gains of 178,000 and 336,000, 

respectively. For both men and women, employment increases in professional and related occupations were concentrated 

in health care practitioner and technical occupations.

Not surprisingly, unemployment rates for nearly all 

of the occupational groups in table 5 rose sharply during 

2009. The greater impact of the economic decline on men 

can be attributed mainly to the concentration of men in 

occupations that are more sensitive to cyclical changes in 

economic conditions—for example, construction and extraction, and production. In 2009, men accounted for 84 

percent of employment in these two occupational groups, 

compared with 49 percent of employment in management, 

professional, and related occupations. The largest increases 

in unemployment rates of all the occupational groups in 

table 5 were for construction and extraction occupations 

and for production occupations, which reached 20.6 percent and 14.4 percent, respectively, in the fourth quarter 

of 2009. In contrast, the increases in unemployment rates 

among managers and professionals were much smaller; the 

rate for management, business, and financial operations 

occupations rose by 1.9 percentage points, to 5.4 percent, 

while that for professional and related occupations rose 

by 1.1 percentage points, to 4.1 percent. Service occupations registered a 2.7-percentage-point increase, reaching 

an unemployment rate of 10.0 percent by the last quarter 

of 2009. 

Median weekly earnings for full-time wage and salary workers increased in 2009, and inflation—as measured by the 

Consumer Price Index—edged down. From 2008 to 2009, 

median usual weekly earnings rose by 2.4 percent, to $739. 

(The data in this section are annual averages, not quarterly 

data.) Over the year, the Consumer Price Index for All Urban Consumers (CPI-U) edged down by 0.4 percent. The 

over-the-year increase in median weekly earnings was the 

smallest since 2005. From 2008 to 2009, weekly earnings at 

the 90th percentile increased by 3.0 percent—to $1,744—

while those at the 10th percentile edged up by 1.2 percent, 

to $350. During the same period, median weekly earnings 

for men and women grew at about the same rate—2.6 

percent and 3.0 percent, respectively. The ratio of women’s 

Persons not in the labor force, quarterly averages, not seasonally adjusted, 2008–09

[In thousands]

Category

2008 2009 Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV Quarter I Quarter II Quarter III Quarter IV

Total not in the labor force....................................... 80,164 81,253 80,762 81,170 83,450 3,286

 Persons who currently want a job....................... 5,019 5,663 6,311 5,874 5,726 707

 Marginally attached to the labor force1 .......... 1,831 2,096 2,159 2,257 2,394 563

 Discouraged workers2 ..................................... 578 717 775 753 866 288

 Other persons marginally attached to the

 labor force3 ....................................................... 1,253 1,379 1,384 1,504 1,528 275

1 Data refer to persons who want a job, have searched for work 

during the previous 12 months, and were available to take a job during 

the reference week, but had not looked for work in the past 4 weeks. 2 Includes those who did not actively look for work in the previous 

4 weeks for reasons such as “thinks no work available,” “could not find 

work,” “lacks schooling or training,” “employer thinks too young or old,” 

and other types of discrimination. 3 Includes those who did not actively look for work in the previous 

4 weeks for such reasons as school or family responsibilities, ill health, 

and transportation problems, as well as a number for whom the reason 

for nonparticipation was not determined.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 3.
Monthly Labor Review • March 2010 15

earnings to men’s earnings was 80.2 percent in 2009. Over 

time, the earnings gap between the sexes has narrowed considerably: in 1979, women’s earnings were 62.3 percent of 

men’s earnings. (See table 6 and chart 9.) 

Among the major race and ethnicity groups, earnings 

increases from 2008 to 2009 were relatively small. For 

Asians and Hispanics, earnings increases were 2.2 percent 

and 2.3 percent, respectively. For both Whites and Blacks, 

earnings rose by 2.0 percent. 

Workers age 25 and over with at least a bachelor’s degree 

continued to have the highest median earnings among the 

education groups in table 6, $1,137 in 2009. This group had 

a 2.0 percent increase in earnings over the previous year’s estimate—the largest among all four educational-attainment 

categories. Workers with some college or an associate’s degree experienced an earnings increase of 0.6 percent, to $726. 

Earnings of high school graduates with no college rose by 1.3 

percent, to $626. For workers without a high school diploma, 

earnings edged up by 0.2 percent, to $454. (See table 6.) 

In 2009, unemployment rates for veterans of all periods of service rose, as did the rate for nonveterans. In the CPS, veterans are defined as men and women who have previously 

served on active duty in the U.S. Armed Forces and who 

were civilians at the time of the survey. In the fourth quarter of 2009, 22.0 million men and women in the civilian 

noninstitutional population age 18 and over were veterans. Veterans are more likely than nonveterans to be men, 

white, and older. In part, this reflects the characteristics 

of veterans who served during World War II, the Korean 

War, and the Vietnam era. Veterans who served during 

these wars account for about one-half of the veteran population. A total of 5.0 million veterans served during Gulf 

War era I (August 1990 to August 2001) or Gulf War 

era II (September 2001 to present).13 Another 5.9 million 

served outside the designated wartime periods.

Overall, 53.0 percent of male veterans age 18 and over 

were in the labor force in the fourth quarter of 2009, compared with 77.8 percent of their nonveteran counterparts. 

This difference in participation rates reflects the older age 

profile of male veterans, who are much more likely than 

nonveterans to be age 55 or over. For both male veterans 

and male nonveterans, labor force participation fell during 

2009. Reflecting the sharp decline in employment, employment-population ratios for veterans of all service periods 

and the ratio for nonveterans fell during 2009. (See table 

7.)

The unemployment rate of male veterans (8.3 percent) was 

 Chart 8. Measures of labor underutilization, U-1 to U-6, seasonally adjusted, quarterly averages, 1994–2009

Percent Percent

20

18

16

14

12

10

8

6

4

2

0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

20

18

16

14

12

10

8

6

4

2

0

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research (NBER). The NBER has not yet determined 

an endpoint for the recession that began in December 2007. U-3 is the official unemployment rate.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

U-6

U-3

U-5

U-4

U-1

U-2
U.S. Labor Market, 2009

16 Monthly Labor Review • March 2010

Employment by occupational group and sex, quarterly averages, not seasonally adjusted, 2008–09

[In thousands] 

Occupational group

Total Men Women

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change,

quarter IV 

2008 to 

quarter IV 

2009

 Total, 16 years and older. 144,500 138,724 –5,776 76,555 72,909 –3,646 67,945 65,815 –2,130

Management, professional, 

and related occupations... 53,102 52,458 –644 25,899 25,336 –563 27,203 27,123 –80

 Management, business, 

and financial operations 

occupations......................... 22,180 21,021 –1,159 12,742 12,000 –742 9,438 9,020 –418

 Professional and related 

occupations........................ 30,922 31,438 516 13,157 13,335 178 17,766 18,102 336

Service occupations............. 24,554 24,301 –253 10,424 10,261 –163 14,131 14,039 –92

 Health care support 

occupations......................... 3,312 3,363 51 364 391 27 2,948 2,972 24

 Protective service 

occupations......................... 3,104 3,096 –8 2,366 2,439 73 738 658 –80

 Food preparation and serving 

related occupations.......... 7,882 7,604 –278 3,477 3,264 –213 4,405 4,340 –65

 Building and grounds 

cleaning and maintenance 

occupations............................. 5,431 5,335 –96 3,240 3,140 –100 2,191 2,194 3

 Personal care and service 

occupations......................... 4,826 4,903 77 977 1,028 51 3,849 3,875 26

Sales and office 

occupations................................. 35,187 33,207 –1,980 12,995 12,459 –536 22,192 20,748 –1,444

 Sales and related 

occupations......................... 16,355 15,400 –955 8,070 7,851 –219 8,284 7,549 –735

 Office and administrative 

support occupations....... 18,833 17,807 –1,026 4,925 4,608 –317 13,908 13,199 –709

Natural resources, construction, and maintenance 

occupations....................................... 14,514 12,981 –1,533 13,901 12,410 –1,491 613 572 –41

 Farming, fishing, and 

forestry occupations......... 932 913 –19 713 731 18 219 182 –37

 Construction and 

extraction occupations.... 8,349 7,407 –942 8,143 7,223 –920 206 183 –23

 Installation, maintenance, 

and repair occupations.... 5,234 4,662 –572 5,046 4,456 –590 188 206 18

Production, transportation, 

and material moving 

occupations......................... 17,143 15,777 –1,366 13,336 12,444 –892 3,806 3,333 -473

 Production occupations... 8,581 7,516 –1,065 6,074 5,425 –649 2,507 2,091 –416

 Transportation and material 

moving occupations............ 8,561 8,261 –300 7,262 7,019 –243 1,299 1,242 –57

NOTE: Data may not sum to totals because of rounding. SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 4.
Monthly Labor Review • March 2010 17

lower than the rate of male nonveterans (10.7 percent) in the 

fourth quarter of 2009. For male veterans, unemployment 

rates ranged from a low of 6.3 percent for those who served 

during Gulf War era I to a high of 9.7 percent for veterans of 

Gulf War era II. Between the fourth quarter of 2008 and the 

fourth quarter of 2009, unemployment rates for veterans of all 

service periods and the rate for nonveterans increased. 

In 2009, unemployment rates increased and employmentpopulation ratios fell among workers with and without a disability. In June 2008, questions were added to the CPS to 

identify people with a disability in the civilian noninstitutional population age 16 and over. The collection of these 

data is sponsored by the Department of Labor’s Office of 

Disability Employment Policy.14 In the fourth quarter of 

2009, people with a disability had a labor force participation rate of 21.6 percent, compared with a rate of 70.3 percent for those without a disability. Labor force participation 

rates for both groups edged down during 2009. There was a 

large difference between the employment-population ratio of people with 

a disability and that of people with 

no disability. In the fourth quarter of 

2009, the ratio for people with a disability was 18.4 percent, compared 

with 63.8 percent for people without 

a disability. Ratios for both groups 

fell over the year. The unemployment 

rate for people with a disability, 14.8 

percent in the fourth quarter of 2009, 

had risen by 3.3 percentage points 

since the fourth quarter of 2008. By 

comparison, the unemployment rate 

for people without a disability was 9.3 

percent in the fourth quarter of 2009, 

up by 2.9 percentage points from a 

year earlier. (See table 8.)

The low labor force participation 

rate among people with a disability 

is due, in part, to the fact that a large 

share of the population of people 

with a disability (45 percent) is age 65 

and over, and that older workers, in 

general, have low rates of labor force 

participation. However, even for those 

age 16 to 64, people with a disability 

were far less likely to be in the labor 

force than those without a disability. 

The following text tabulation shows 

fourth-quarter 2009 data on people 

age 16 to 64 not in the labor force by presence of a disability 

and desire for work. 

 Total, with Total, with 

 a disability, no disability,

 age 16–64 age 16–64

Total not in the labor 

 force (in thousands)............. 9,839 41,012 

 Persons who currently 

 want a job (percent).......... 4.9 11.0

 Marginally attached to 

 the labor force 

 (percent) ....................... 1.9 4.9

 Reasons for not currently 

 looking:

 Discouraged workers 

 (percent) .................. .6 1.7

 Other persons margin-

 ally attached to the 

 labor force (percent) 1.3 3.1

Unemployment rates by occupational group, quarterly averages, not 

seasonally adjusted, 2008–09

Occupational group Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Management, professional, and related occupations............ 3.2 4.6 1.4

 Management, business, and financial operations

 occupations........................................................................................ 3.5 5.4 1.9

 Professional and related occupations......................................... 3.0 4.1 1.1

Service occupations............................................................................ 7.3 10.0 2.7

 Health care support occupations................................................. 4.3 7.7 3.4

 Protective service occupations..................................................... 3.8 5.4 1.6

 Food preparation and serving related occupations.............. 9.2 11.8 2.6

 Building and grounds cleaning and maintenance 

occupations....................................................................................... 9.0 12.3 3.3

 Personal care and service occupations...................................... 6.2 8.6 2.4

Sales and office occupations............................................................ 6.2 9.0 2.8

 Sales and related occupations....................................................... 6.5 9.2 2.7

 Office and administrative support occupations..................... 5.9 8.8 2.9

Natural resources, construction, and maintenance 

occupations........................................................................................ 10.4 16.5 6.1

 Farming, fishing, and forestry occupations.............................. 12.8 15.8 3.0

 Construction and extraction occupations................................ 12.9 20.6 7.7

 Installation, maintenance, and repair occupations................ 5.7 9.1 3.4

Production, transportation, and material moving 

occupations........................................................................................ 9.2 13.1 3.9

 Production occupations.................................................................. 9.6 14.4 4.8

 Transportation and material moving occupations................ 8.8 11.8 3.0

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 5.
U.S. Labor Market, 2009

18 Monthly Labor Review • March 2010

Regardless of disability status, only a 

small minority of people not in the 

labor force wanted a job at the time 

of the survey; 11.0 percent of nonparticipants without a disability and 

4.9 percent of those with a disability 

wanted a job. People with a disability 

were less likely than those without a 

disability to be classified as persons 

marginally attached to the labor 

force or as discouraged workers. 

Both foreign- and native-born people 

were adversely affected by poor labor 

market conditions. In the fourth 

quarter of 2009, foreign-born workers 

made up 15.7 percent of the U.S. civilian labor force age 16 and over.The 

foreign born are people who reside in 

the United States but who were born 

outside the country or one of its outlying areas to parents who were not 

U.S. citizens.The foreign born include 

legally admitted immigrants, refugees, and temporary residents such as 

students and temporary workers, as 

Median usual weekly earnings of full-time wage and salary workers 

by selected characteristics, annual averages, 2008–09 

Characteristic 2008 2009

Percent 

change, 

2008–09

Total, 16 years and older............................................. $722 $739 2.4

CPI-U (1982–84 = 100) .................................................. 215.3 214.5 –.4

 Men .................................................................................. $798 $819 2.6

 Women............................................................................ 638 657 3.0

 White................................................................................ 742 757 2.0

 Men ................................................................................ 825 845 2.4

 Women.......................................................................... 654 669 2.3

 Black or African American........................................ 589 601 2.0

 Men. ............................................................................... 620 621 .2

 Women.......................................................................... 554 582 5.1

 Asian................................................................................. 861 880 2.2

 Men ................................................................................ 966 952 –1.4

 Women.......................................................................... 753 779 3.5

 Hispanic or Latino ethnicity..................................... 529 541 2.3

 Men ................................................................................ 559 569 1.8

 Women.......................................................................... 501 509 1.6

Total, 25 years and older............................................. 761 774 1.7

 Less than a high school diploma ............................ 453 454 .2

 High school diploma, no college........................... 618 626 1.3

 Some college or associate’s degree...................... 722 726 .6

 Bachelor's degree or higher, total ......................... 1,115 1,137 2.0

SOURCE: Bureau of Labor Statistics, Current Population Survey and Consumer Price 

Index.

Table 6.

Women’s median usual weekly earnings as a percent of men’s, full-time wage and salary workers, 

annual averages, 1979–2009

Percent Percent

85

80

75

70

65

60

55

50

SOURCE: Bureau of Labor Statistics, Current Population Survey.

1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009

85

80

75

70

65

60

55

50

 Chart 9. 
Monthly Labor Review • March 2010 19

Employment status of persons 18 years and older, by veterans status, period of service, and sex, quarterly 

averages, not seasonally adjusted, 2008–09

[Levels in thousands]

Employment status, veteran 

status, and period of service 

Both sexes Men Women

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV

 2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Veterans, 18 years and older

 Civilian labor force ..................... 12,413 11,856 –557 11,247 10,741 –506 1,166 1,114 –52

 Participation rate...................... 55.4 53.8 –1.6 54.4 53.0 –1.4 66.9 63.1 –3.8

 Employed.................................... 11,715 10,878 –837 10,624 9,850 –774 1,091 1,028 –63

 Employment-population

 ratio........................................... 52.3 49.4 –2.9 51.4 48.6 –2.8 62.6 58.3 –4.3

 Unemployed .............................. 698 978 280 623 892 269 75 86 11

 Unemployment rate.............. 5.6 8.2 2.6 5.5 8.3 2.8 6.4 7.7 1.3

Gulf war era II veterans

 Civilian labor force ..................... 1,525 1,709 184 1,279 1,453 174 246 257 11

 Participation rate...................... 85.8 83.1 –2.7 87.4 84.9 –2.5 78.2 74.1 –4.1

 Employed.................................... 1,410 1,544 134 1,180 1,311 131 231 233 2

 Employment-population

 ratio........................................... 79.3 75.1 –4.2 80.6 76.6 -4.0 73.4 67.3 –6.1

 Unemployed .............................. 115 165 50 100 142 42 15 23 8

 Unemployment rate.............. 7.5 9.7 2.2 7.8 9.7 1.9 6.1 9.1 3.0

Gulf war era I veterans 

Civilian labor force ....................... 2,563 2,530 –33 2,226 2,162 –64 337 368 31

 Participation rate...................... 87.9 87.1 –.8 89.8 88.7 –1.1 77.0 78.7 1.7

 Employed.................................... 2,427 2,367 –60 2,119 2,026 –93 308 342 34

 Employment-population

 ratio........................................... 83.2 81.5 –1.7 85.5 83.1 –2.4 70.4 73.0 2.6

 Unemployed .............................. 136 163 27 107 136 29 29 27 –2

 Unemployment rate.............. 5.3 6.4 1.1 4.8 6.3 1.5 8.6 7.2 –1.4

World War II, Korean War, 

and Vietnam-era veterans

 Civilian labor force ..................... 4,634 4,144 –490 4,487 4,010 –477 148 133 –15

 Participation rate...................... 39.5 37.0 –2.5 39.6 37.0 –2.6 38.5 35.8 –2.7

 Employed.................................... 4,409 3,798 –611 4,271 3,676 –595 138 123 –15

 Employment-population

 ratio........................................... 37.6 33.9 –3.7 37.6 33.9 –3.7 36.0 32.9 –3.1

 Unemployed .............................. 226 345 119 216 335 119 10 11 1

 Unemployment rate.............. 4.9 8.3 3.4 4.8 8.3 3.5 6.5 8.0 1.5

Veterans of other service 

periods

 Civilian labor force ..................... 3,691 3,473 –218 3,255 3,117 –138 436 356 –80

 Participation rate...................... 61.5 59.1 –2.4 60.4 58.8 –1.6 71.8 61.7 –10.1

 Employed.................................... 3,469 3,168 –301 3,055 2,838 –217 414 331 –83

 Employment-population

 ratio........................................... 57.8 53.9 –3.9 56.7 53.6 –3.1 68.3 57.3 –11.0

 Unemployed .............................. 221 305 84 200 279 79 21 26 5

 Unemployment rate.............. 6.0 8.8 2.8 6.1 9.0 2.9 4.9 7.2 2.3

Nonveterans, 18 years 

and older

 Civilian labor force ..................... 139,915 139,509 –406 70,115 69,886 –229 69,800 69,623 –177

 Participation rate...................... 68.9 67.8 –1.1 79.4 77.8 –1.6 60.8 60.1 –.7

 Employed.................................... 130,971 126,470 –4,501 65,116 62,423 –2,693 65,854 64,046 –1,808

 Employment-population

 ratio........................................... 64.5 61.5 –3.0 73.7 69.5 –4.2 57.4 55.2 –2.2

 Unemployed .............................. 8,944 13,039 4,095 4,999 7,463 2,464 3,945 5,577 1,632

 Unemployment rate.............. 6.4 9.3 2.9 7.1 10.7 3.6 5.7 8.0 2.3

See note at end of table.

Table 7.
U.S. Labor Market, 2009

20 Monthly Labor Review • March 2010

Employment status of the civilian noninstitutional population, by sex, age, and disability status, quarterly 

averages, not seasonally adjusted, 2008–09

[Levels in thousands]

Employment status, sex, and age

Persons with a disability Persons with no disability

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Total, 16 years and older

 Civilian labor force ....................................... 6,234 5,830 –404 148,427 147,459 –968

 Participation rate........................................ 23.1 21.6 –1.5 71.4 70.3 –1.1

 Employed...................................................... 5,518 4,967 –551 138,983 133,757 –5,226

 Employment-population ratio ............ 20.4 18.4 –2.0 66.9 63.8 –3.1

 Unemployed ................................................ 717 863 146 9,444 13,702 4,258

 Unemployment rate................................ 11.5 14.8 3.3 6.4 9.3 2.9

Men, 16 to 64 years

 Civilian labor force ....................................... 2,884 2,637 -247 76,030 75,222 –808

 Participation rate........................................ 38.8 36.4 -2.4 84.4 82.8 –1.6

 Employed...................................................... 2,518 2,205 -313 70,661 67,250 –3,411

 Employment-population ratio ............ 33.9 30.4 -3.5 78.5 74.1 –4.4

 Unemployed ................................................ 366 432 66 5,369 7,972 2,603

 Unemployment rate................................ 12.7 16.4 3.7 7.1 10.6 3.5

Women, 16 to 64 years

 Civilian labor force ....................................... 2,464 2,352 –113 66,853 66,379 –474

 Participation rate........................................ 32.4 31.0 –1.4 72.5 71.5 –1.0

 Employed...................................................... 2,162 2,003 –159 63,027 61,000 –2,027

 Employment-population ratio ............ 28.5 26.4 –2.1 68.3 65.7 –2.6

 Unemployed ................................................ 302 349 47 3,827 5,379 1,552

 Unemployment rate................................ 12.3 14.8 2.5 5.7 8.1 2.4

Both sexes, 65 years and older

 Civilian labor force ....................................... 886 840 –46 5,544 5,858 314

 Participation rate........................................ 7.4 6.9 –.5 21.7 22.4 .7

 Employed...................................................... 838 759 –79 5,295 5,507 212

 Employment-population ratio ............ 7.0 6.2 –.8 20.7 21.1 .4

 Unemployed ................................................ 48 81 33 249 351 102

 Unemployment rate............................. 5.4 9.7 4.3 4.5 6.0 1.5

NOTE: A person with a disability has at least one of the following 

conditions: deafness or serious difficulty hearing; blindness or serious difficulty seeing, even with glasses; serious difficulty concentrating, remembering, or making decisions because of a physical, mental, or emotional 

condition; serious difficulty walking or climbing stairs; difficulty dressing

or bathing; or difficulty doing errands alone such as visiting a doctor’s office or shopping because of a physical, mental, or emotional condition. 

Updated population controls are introduced annually with the release of 

January data.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 8.

Continued—Employment status of persons 18 years and older, by veterans status, period of service, and sex, 

quarterly averages, not seasonally adjusted, 2008–09

NOTE: Veterans served on active duty in the U.S. Armed Forces 

and were not on active duty at the time of the survey. Nonveter- ans never served on active duty in the U.S. Armed Forces. Veterans 

could have served anywhere in the world during these periods of 

service: Gulf War era II (September 2001-present), Gulf War era I 

(August 1990–August 2001), Vietnam era (August 1964–April 1975), 

Korean War (July 1950–January 1955), World War II (December 

1941–December 1946), and other service periods (all other time

periods). Veterans who served in more than one wartime period are 

classified only in the most recent one. Veterans who served during 

one of the selected wartime periods and another period are classi- fied only in the wartime period. Updated population controls are 

introduced annually with the release of January data.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 7.
Monthly Labor Review • March 2010 21

well as undocumented immigrants. In the fourth quarter 

of 2009, 67.7 percent of the foreign born, or 24.2 million, 

were in the labor force, the same proportion as a year earlier. 

By comparison, the labor force participation rate of nativeborn workers fell by 1.3 percentage points, over the year, to 

64.2 percent in the fourth quarter of 2009. (See table 9.)

Reflecting sharp declines in employment during 2009, 

the employment-population ratio for foreign-born workers fell by 2.3 percentage points, from 63.2 percent in the 

fourth quarter of 2008 to 60.9 percent in the fourth quarter of 2009.15 Over the same period, the employmentpopulation ratio for the native born fell by 3.0 percentage 

points, from 61.2 percent to 58.2 percent. 

The unemployment rate for the foreign born, 6.7 percent in the fourth quarter of 2008, rose by 3.3 percentage points, reaching 10.0 percent in the fourth quarter of 

2009. Over the same period, the rate for the native born 

rose by 2.8 percentage points, to 9.4 percent. From the 

Employment status of the foreign- and native-born populations by sex, quarterly averages, not seasonally 

adjusted, 2008–09

[Levels in thousands]

Employment status and 

nativity 

Both sexes Men Women

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Quarter IV 

2008

Quarter IV 

2009

Change, 

quarter IV 

2008 to 

quarter IV 

2009

Foreign born, 16 years 

and older

 Civilian labor force ............. 23,965 24,157 192 14,328 14,292 –36 9,637 9,864 227

 Participation rate.............. 67.7 67.7 .0 80.6 79.7 –.9 54.7 55.5 .8

 Employed............................ 22,365 21,746 –619 13,352 12,799 –553 9,013 8,947 –66

 Employment-population 

 ratio...................................

 Unemployed ......................

63.2 60.9 –2.3 75.1 71.4 –3.7 51.2 50.4 –.8

1,600 2,411 811 976 1,494 518 624 918 294

 Unemployment rate...... 6.7 10.0 3.3 6.8 10.5 3.7 6.5 9.3 2.8

Native born, 16 years 

and older

 Civilian labor force ............. 130,696 129,312 –1,384 68,143 67,267 –876 62,553 61,865 –688

 Participation rate.............. 65.5 64.2 –1.3 71.1 69.6 –1.5 60.4 59.3 –1.1

 Employed............................ 122,135 116,979 –5,156 63,203 60,110 –3,093 58,932 56,869 –2,063

 Employment-population 

 ratio...................................

 Unemployed ......................

61.2 58.2 –3.0 65.9 62.2 –3.7 56.9 54.5 –2.4

8,561 12,153 3,592 4,940 7,157 2,217 3,621 4,997 1,376

 Unemployment rate...... 6.6 9.4 2.8 7.2 10.6 3.4 5.8 8.1 2.3

NOTE: The foreign born are those residing in the United States 

who were not U.S. citizens at birth. That is, they were born outside 

the United States or one of its outlying areas such as Puerto Rico or 

Guam, to parents who both were not U.S. citizens. The native born 

are persons who were born in the United States or one of its outlying areas such as Puerto Rico or Guam or who were born abroad 

of at least one parent who was a U.S. citizen. Updated population controls are introduced annually with the release of January 

data.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Table 9.

fourth quarter of 2008 to the fourth quarter of 2009, the 

unemployment rate for foreign-born men rose from 6.8 

percent to 10.5 percent, while the rate for foreign-born 

women increased from 6.5 percent to 9.3 percent. 

CPS DATA INDICATE THAT THE LABOR MARKET

remained weak in 2009, as the economy struggled to recover from the recession that began in December 2007. 

Unemployment rates for nearly all major worker groups 

jumped in the beginning of the year, but the increases 

moderated after the second quarter of 2009. Employment declined for all major worker groups during 2009, 

with men accounting for a much larger proportion of the 

decline than women. The employment-population ratio 

dropped sharply over the year, and labor force participation declined. In addition, there was a large increase in 

unemployment due to job loss, and the share of unemployment accounted for by the long-term jobless was the 
U.S. Labor Market, 2009

22 Monthly Labor Review • March 2010

largest on record. The number of people employed part 

time for economic reasons also continued to grow in 2009, 

although the pace of the increase slowed as the year progressed. Median weekly earnings for full-time wage and 

salary workers rose slightly in 2009, while the rate of inflation edged down.

Notes

1 The NBER, the generally recognized arbiter of recessions in the 

United States, has designated December 2007 as the beginning of the 

most recent recession. The NBER has not yet determined an endpoint 

for the most recent recession.

2 The data in this article are based on information collected in the 

CPS, which is a survey of about 60,000 households nationwide; the CPS 

is sponsored jointly by the Bureau of Labor Statistics and the Census 

Bureau. (For more information about the CPS, see the box on page 5.) 

Although the CPS is a monthly survey, the data analyzed throughout 

this article are seasonally adjusted quarterly averages, unless otherwise 

noted. All over-the-year changes—unless otherwise noted—are comparisons of fourth-quarter data from 2008 with those from 2009.

3 The labor force participation rate is the civilian labor force as a 

percent of the civilian noninstitutional population. The labor force is 

the sum of the employed and unemployed. (A person cannot be considered “unemployed” if he or she is not in the labor force.)

4 For additional analysis of the impact of recessions on various demographic groups, see Kristie M. Engemann and Howard J. Wall, “The 

Effects of Recessions Across Demographic Groups,” Federal Reserve 

Bank of St. Louis Review, January/February 2010, pp. 1–26; on the Internet at http://research.stlouisfed.org/publications/review/10/01/

Engemann.pdf (visited Feb. 18, 2010).

5 For more information on teen school enrollment and employment, see Teresa L. Morisi’s forthcoming article in the Monthly Labor 

Review. See also Teresa L. Morisi, “Youth enrollment and employment 

during the school year,” Monthly Labor Review, February 2008, pp. 

51–63; on the Internet at www.bls.gov/opub/mlr/2008/02/art3full.

pdf (visited Feb. 18, 2010). In a recent study, Christopher L. Smith 

finds evidence that the recent increase in immigration of lower skilled 

people has had a greater impact on native youth employment than 

on the employment of native adults. See Christopher L. Smith, “The 

Impact of Low-Skilled Immigration on the Youth Labor Market,” Finance and Economics Discussion Series, 2010–03, (Federal Reserve Board, 

December 2009); on the Internet at www.federalreserve.gov/pubs/

feds/2010/201003/201003pap.pdf (visited Feb. 19, 2010). Another 

study, whose findings stand in contrast to those of Smith, estimates the 

effects of immigration on the productivity, the capital intensity, and the 

skill bias of U.S. State economies. The author finds that immigrants do 

not crowd out natives with regard to employment. Moreover, the author finds that immigrants increased total factor productivity and decreased capital intensity and the skill bias of production technologies. 

See Giovanni Peri, The Effect of Immigration on Productivity: Evidence 

from US States, Working Paper 15507 (National Bureau of Economic 

Research, November 2009).

6 For additional analysis of recent trends in the labor force status 

of older workers, see Emy Sok, “Record unemployment among older 

workers does not keep them out of the job market,” Issues in Labor 

Statistics, Summary 10–04 (Bureau of Labor Statistics, March 2010), 

on the Internet at www.bls.gov/opub/ils/pdf/opbils81.pdf (visited 

Mar. 31, 2010).

7 A recent study examined the labor market experiences of white 

male college graduates who entered the labor market during a recession. The author found that the labor market consequences of graduating college during an economic downturn were large, negative, and 

persistent. See Lisa B. Kahn, “The Long-Term Labor Market Consequences of Graduating College in a Bad Economy,” Labour Economics, 

forthcoming.

8 Duration of joblessness is the length of time (through the current 

reference week) that people classified as unemployed have been looking for work. This measure refers to the current spell of unemployment 

rather than to the duration of a completed spell.

9 For more information on labor force flows, including analysis of 

recent data, see Harley J. Frazis and Randy E. Ilg, “Trends in labor 

force flows during recent recessions,” Monthly Labor Review, April 

2009, pp. 3–18; on the Internet at www.bls.gov/opub/mlr/2009/04/

art1full.pdf (visited Feb. 18, 2010).

10 For additional information on people working part time for economic reasons, see Emy Sok, “Involuntary part-time work on the rise,” 

Issues in Labor Statistics, Summary 08–08 (Bureau of Labor Statistics, 

December 2008); on the Internet at www.bls.gov/opub/ils/pdf/opbils71.pdf (visited Feb. 18, 2010).

11 For additional analysis of marginally attached and discouraged 

workers, see Sharon Cohany, “Ranks of Discouraged Workers and 

Others Marginally Attached to the Labor Force Rise During Recession,” Issues in Labor Statistics, Summary 09-04 (Bureau of Labor 

Statistics, April 2009); on the Internet at www.bls.gov/opub/ils/pdf/

opbils74.pdf (visited Feb. 18, 2010).

12 For further information on the measures of labor underutilization, see Steven E. Haugen, “Measures of Labor Underutilization from 

the Current Population Survey,” Working Paper 424 (Bureau of Labor 

Statistics, March 2009); on the Internet at www.bls.gov/osmr/pdf/

ec090020.pdf (visited Feb. 18, 2010).

13 Veterans who served in more than one wartime period are classified only in the most recent one.

14 For more information about the CPS data on people with a disability, see “Frequently asked questions about disability data” on the 

BLS Web site at www.bls.gov/cps/cpsdisability_faq.htm (visited Feb. 

18, 2010).

15 In a recent report, Pia M. Orrenius and Madeline Zavodny 

analyze labor market data on the foreign and native born over the 

1994–2009 period. The authors find that economic outcomes of the 

foreign born in the short run are more strongly tied to the business cycle than those of their native-born counterparts. See Pia M. Orrenius 

and Madeline Zavodny, Tied to the Business Cycle: How Immigrants Fare 

in Good and Bad Economic Times (Washington, DC, Migration Policy 

Institute, November 2009); on the Internet at www.migrationpolicy.

org/pubs/orrenius-Nov09.pdf (visited Feb. 18, 2010).