ECONOMIC

of longer-term trends. Over the past 2 decades, for example, the labor forceparticipation rate of women aged 20 and over has risen 11 percentage pointsfrom 36 percent in 1956. This change reflects a combination of relatedfactors: increased potential earnings in the labor market; later marriages; adecline in birth rates; more efficient production in the home because of suchtime-saving consumer durables as freezers and dishwashers, and such nondurablesas frozen foods and wash-and-wear clothing; and a change inattitudes concerning the roles of men and women. The expanded employmentopportunities in 1976 compared to the previous year may also haveencouraged greater labor force participation by women.The increase in labor force participation by adult females last summerappears to be larger than one would have predicted on the basis of thesecular and cyclical factors. The rise in the participation rate from 46.6percent in the first 5 months to 47.3 percent in July and August, and thedecline to 47.2 percent in the following 3 months may be traceable in partto the effect of SUA, which provided a new incentive for women in the educationalservices industry, and perhaps in other sectors, to remain in thelabor force rather than withdrawing during the summer.In summary, the substantial increase in employment (2.7 million persons)last year was accompanied by a very strong growth in the civilian laborforce (2.2 million persons). The labor force growth resulted mainly from theincrease in the population aged 16 and over, the secular increase in overalllabor force participation rates, and the economic recovery to the extent that itencouraged persons to enter or remain in the labor force. The result of thesefactors was that only a moderate decline occurred in the number of unemployedpersons (0.5 million).INCOME TRANSFER PROGRAMSA major concern of public policy in a recession is to mitigate the loss offamily income among those who become unemployed. Cushioning this losshelps to maintain consumer purchases and thereby facilitates economic recovery.It also provides for a broader sharing of the economic burden createdby a recession. With the improvement in the economy in 1976, benefits underincome transfer programs declined (Table 22).Unemployment compensation is the most important countercyclical incometransfer program. As unemployment increases because of layoffs, thenumber of recipients increases; with the recall of workers the number ofrecipients declines. This pattern appeared in the last 2 years during thedecline in economic activity and in the subsequent recovery (Table 22).The ability of the unemployment compensation system to respond to theeconomic downturn was strengthened by two temporary programs. UnderFSB the duration of entitlement for persons covered by a regular programwas extended in two 13-week installments to a maximum of 65 weeks. Benefitdurations under FSB were reduced in 1976 in States with lower insuredunemployment rates, and FSB is scheduled to terminate this March.87