According to the CED, policymakers should seek to remove barriers that drive differences in labor force participation across key factors such as age and parental status. Its recommendations include the following:

Repealing the Social Security retirement earnings test, which would reduce confusion among workers nearing full retirement age and boost labor force participation.
Expanding the Earned Income Tax Credit (EITC), which would promote work and reduce hardship among low-income workers. Congress should increase the maximum EITC and income limit for individuals without children and remove age eligibility restrictions that penalize those over 65 or under 25, according to the CED.
Creating flexible work arrangements, which can support workforce participation for many groups — including older workers, parents with young children, caregivers, and those with disabilities.
Increasing support for working parents by increasing financial support for paid childcare through expanding funding for the Child Care and Development Fund, as well as potentially reforming the Child and Dependent Care Tax Credit, and making more forms of childcare eligible.
Increasing the childcare workforce and providing on-site childcare facilities.

Instant Insights /

U.S. must add 4.6 million workers annually to avert labor crisis

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